>> Narrator: From Miami Beach, Florida, it's theCUBE. Covering Acronis Global Cyber Summit 2019. Brought to you by Acronis. >> Everyone welcome back to theCUBE coverage here in Miami Beach at the Fontainebleau Hotel, for Acronis' Global Cyber Summit 2019. I'm John Furrier. Two days of coverage, we're on day two, learning a lot about the global security, cyber security, and protection. Market place and Solutions. Our next guest is Alex Miroshnichenko. Also know as Alex Miro. Great to have you on. And great chatting with you prior to coming on camera. Thanks for coming on. >> My pleasure, thank you. >> So Vice President of Cyber Infrastructure for Acronis, essentially looking at your platform. That's essentially the hyperconverged stack underneath the platform software you're enabling, kind of the critical infrastructure for-- >> That's, yeah that's one-- >> the platform. >> one way to describe it. It is infrastructure we provide the complete stack. All the way whatever you're ran on top of. The standard comminuting hardware, including the virtualization layer. Capability to run the still standard container workloads. And essentially optimized for whole cyber platform. It's good enough. >> You know you're interesting background. We were talking before we came on camera about your background. Certainly you've seen waves of innovation, you've been a high performance, storage enterprise, infrastructure, engineer and developer, and executive. A lot has change in past couple of years, and certainly the past decade. You're on the vSAN wave, you saw that storage wave, and now we're in a cloud wave. Now we're on premise with hybrid. >> All right. >> So hybrid, certainly now a big part of the operating model. >> Correct. >> So the operating system is not just storage anymore, it's a system view. What's your personal opinion on where storage is now? I've heard software defined data center from VMware for years. We've even joked about software defined storage, software defined compute. >> Everything. >> I mean everything software defined, but software is the game. Scale's a game, high performance is a requirement. What's changed in storage right now? >> Well in everything and in nothing at the same time. As I said, like, remember going back to thirty years ago. It's like, "Oh gosh, the storage is exploding!" You know, soon we're going to have like two gigabytes. (laughter) You know a company server, my God! And, or, where's it going to be coming from. Like imagining when people started recording music, like they seeing this MP3 things is coming up so. >> Yeah. It's the same game, different year. More game, more storage. >> It's just like, It's this exponential curve. It's like the shape of the curve stays the same. And to be honest, I, part of me never believes that. Like come on, how much bigger can it get, and now everybody's like we get IUT line, we got like those cameras. Streaming things 24/7 and every possible thing you can think of. And of course we're going to store everything, but we obviously don't know what to do with it, but. So from that point of view, the demand keeps growing and you need, you have technologies to handle that appropriately. >> Yeah. >> And again, it's just not a matter of kind of throwing the bits somewhere and forgetting about them. It's just keeping them in the predefined order, and actually being able to process them. And Acronis in the business of a cyber protection. Some people say: "Oh you guys are just "like a back up company." I mean yeah, that's the fundamental part of that, but as you pointed in our pregame chat, as you call it. (laughter) Is, the traditional data protection guys, be that backup, you know you can think about as the various, like a raid as a way to protect your data. They are all about defending against like physical disruption as you call it, right. My disk died, my data center died. You know, my power went out. >> Yeah >> So what do I do? I was the data. But it does not protect you, what I call a logical destruction. I mean back in the classical. >> Logical disruption, what does, >> Disruption >> Okay yeah logical disruption >> Did I say this destruction?. Okay. >> Disruption. It's almost the same thing. >> Right >> I mean, ransomware is pretty much destructive. I mean it's hostage at that point. Logical meaning nonphysical, not like an event like a hurricane or outage or something like that. >> I mean you remove the wrong file, the right file and you didn't notice that. And then you went through several back up cycles and then you realize, " Oh, I want my files back" but then you, the back up that had that file is gone. I mean what are you going to do right? Nothing got disrupted, destructed or destroyed. (laughter) But your files gone. >> So logical disruptions or destructions that's happening, certainly your security points that out. >> But the security is the big thing. That's what the people didn't think about it back, definitely not like me, back twenty years ago. It's like, they. So what happens if you see some got hacked or like people, like a ransomware, right. It's specifically the product designed to muck with your storage. Encrypted, deleted, whatever they want to do there. And again, next thing you know, you're backing up junk that will keep a virus somewhere. And then you go to your back ups and then it's like oh my God, where's everything? Because it's all dead. >> So you're saying people have really strong back up and recovery, but they're recovering malware that they stored. >> Exactly. >> Yeah. >> It's like. (laughter) >> So that seem like an obvious problem, but nobody but Acronis as actually provides an integrated solution to deal with that. I mean there are different, I mean people know what the problem is and there companies out there, like we'll scan your backup archives, and will find malware backup. Fine, great. But then anybody could try to really deal with their restore, in a critical situation, knows that even without the malware concerns, it's stressful shall we say. >> Yeah and it's not always predictable. And it's post haste too. After the fact. >> Right. But if the malware is involved that's, you know, it becomes and extremely expensive and sometimes impossible operation. Acronis takes care of that. Because you know we can actually monitor your back ups. We can find out where was the last time you were clean. It's a post-hoc. We're purposely practical sort through, kind of real time scanning for viruses. So it's a multilevel cyber protection. Which is fairly, I think, >> New >> I think it's unique in the industry. >> Well I think it's interesting how you guys have brought data protection concepts and paradigm, and practice by the way into cyber with much more holistic view. >> Right. >> And I think that's like an operating system kind of thinking. And thinking holistically is about systems. And systems has consequences. If something goes wrong over here it's affecting it, all over the place. >> Right. You've got to the right software for that. >> And I have a very strong system background or DNA as they sometimes like to say that. And in fact the first virtualization solution and containers for that matter, were built by the Acronis engineering team. More than fifteen years ago, way before anybody in the Linux world new how to spell container or what they mean. So our storage layer, software defined storage, >> Yeah. it's fully blown HCI product. Complete around, understand who built that. That gives us a unique advantage among the security companies. >> You know I got to ask you a question. I'm fascinated, I'm a student of history and also of competitive advantage when it comes to technology platforms, and the one thing I always say and see is entrepreneurs whether they're young or old, is that there's two types of entrepreneurs: there's a systems thinker and a coder, right. And I think with platforms you can't short cut a platform because there's trajectory benefits, economies of scale for putting the work in. You can't just put a platform out there over night. You got to have a, you got to build it and it takes time. So there's some people trying to exhilarate platforms. Some have done the work, you guys have done it for a long time. What's your view on that whole: "Well I'm going to throw a whole platform out there." What are some of the things that get exposed when I try to push a platform too fast? >> Well, the platform presumes that you have an ecosystem, people actually using it and building stuff on top of that. Like every, you talked about the coders, every programmers, software developer, or most of them at least. They dream of two things: To write and create a new programming language. Finally the one. >> Yeah, yeah. (laughter) Or the other kind of guy is like, I'm going to write a new operating system. I went through that phase mostly an operating system. Log time ago. And it's a process. I mean whatever you build has to actually serve the purpose. >> Yup. >> There are a lots of platforms in all areas of technology that people's like: "Oh, we're going to create a set of API's "and anybody can plug into us." It's like unless you solved the real problem and really simplify life for people, they're not going to do that. They're not going to do, use a platform for the sake of using the platform. Our cyber platform is different because we're essentially exposed our API's to our technology that's out there and people has been using. I mean, I don't know you saw the keynote yesterday, there was a demo the way how to write, let's go to plug in for the sake of better term. For the person who's interviewed. When people can add their own policies to cyber protect workflow. Which could be specific to what they're doing. You know they notarize things like that. That plan the platform makes sense because it's already out there and it responds to customer demands. We love what you guys do but we have this special, a specific set of requirements. If it's general enough, incorporate it into the product but there's also a lot of things which could be specific to a vertical or even to a specific company. >> Yeah. >> We just want to enable them to do stuff. >> Well that's what platforms are they're enabling >> Right. >> They have to enable some capabilities that provides value to >> Right. >> that use case. And that can be custom or domain specific. >> I'm sorry what? >> That could be domain specific. >> Yes, I'm sorry. >> A platform enables capabilities for someone to do something. (mumbles) >> Yes, but again the key point to the platform is, it has to kind of solve a real problem, not be there for the sake of elegance, or solution, or API's or thing of that nature. >> Final question for you Alex. I'm a CIO or CSO or I'm there decision making, man you know what, I got to rethink my enterprise architecture, I got to think about, I got IoT coming, I got industrial IoT and just regular IoT, I want to have a comprehensive platform. Why Acronis, what's the pitch? And what's different than the traditional SAN's and storage and other solutions out there? What's that pitch to that enterprise decision maker about Acronis? >> Well. You kind of, like you said, you have a tremendous growth in your data flows, the number of data sources are exploding. That's actually going back to your previous question. I think that's what one of the difference is. That it's not just the volume of data, it's the breadth of the data sources you're getting that. So you kind of have to manage that cat zoo some how or it's not even a cat, I don't know. I don't know what the right world analogy for that. So how you guys going to manage that if you have to protect it? At least you have to know what your exposure is, and what the things there. And just throwing out a bunch of you know, like standard cyber, >> Point products. >> technology point products is not going to solve it. I mean yes you can hire lots of people, you can build your own thing, you would be effectively reinventing lot of wheels in the process while we already have that solution for you. >> I like the platform idea because it makes data more addressable horizontally scalable. It's not a side load. >> Right. >> (mumbles) product that you can actually work and enable the data. Data's moving around and you got to be acting on. >> Yes. >> You need software to do that. >> Yes, exactly. So that's another thing. It's not, it's like a structure data, resting on structured data. There's discussions been going on for many years. You know the reality is you will always have both types and you always have the need to process them in both ways. And that's the flexibility. >> I have one more question final question since I just popped in my head. So final, final question. What's in the infrastructure platform that you're involved in that people should know about, that they might not know about that's important to investigate? Is there a killer feature, is there a killer thing in there that is notable that they should know about? What's under the hood on the infrastructures side for Acronis? >> Well lots of things. >> What's your favorite features? >> What are you talking about? >> What's your favorite feature? What's the one thing? >> Gosh you know it's like I have lot of data and I love them all. It's kind of hard >> Yeah you can't take sides. >> It's not sides. Let's say I've been writing storage most of my career. So I like storage. But that doesn't mean it's more important or less important than other things. >> Yeah. >> Unless you have a comprehensive compute layer on top of that. The storage is just, then it becomes a storage vendor, niche vendor, so that's not who we are. I'm really fascinated by actually the integration with the like cyber feature in the security because that's on one hand it's not something that I've been doing in my previous career for most of the time, but I do have a lot of kind of understanding of the workflow issues and integration points. >> Yeah. >> And that excites me. That's one the reasons. >> Yeah. Integrated platform is one the key things. Thanks for coming on Alex. Thanks for sharing your insight. Appreciate it, first in the morning here, and well afternoon now. Thanks for coming on. >> You never know, it's like everybody is so busy. >> The Acronis inaugural Global Cyber Summit 2019. About cyber protection, not data protection. Cyber protection, they both work hand and hand. >> Right. >> This is theCUBE Coverage here in Miami Beach, I'm John Furrier, we'll be back with more after this short break (upbeat music)

>> Announcer: From Miami Beach, Florida, it's theCUBE. Covering Acronis Global Cyber Summit 2019. Brought to you by Acronis. >> Welcome back to theCUBE's coverage. Two days here in Miami Beach at the Fontainebleau Hotel for Acronis' Global Cyber Summit 2019. I'm John Furrier, host of theCUBE. We are breaking it all down, our next guest, Ryan Walsh, co-founder and chief channel officer at Pax8. Just talking, riffing about the change in the channels. Welcome to theCUBE. >> Thank you so much, John, happy to be here. >> Thanks for coming on. >> Yeah, that's great. >> We have multiple ways of innovation now more than ever. Cloud computing, and digital products. The game is still the same but the equation changes. I've got to get a product in the hands of the customer through a channel of distribution, aka system intergraters, ISVs, VABS, VARS, resellers. Whatever the hell the word is, it's a channel. >> Ryan: That's right. >> And they want to have their customers pay them for services and have turnkey products. Okay, that old world has shifted, so now software. >> Ryan: That's right. >> You got hardware that you could buy from Acronis and others. Edge devices that can be deployed, managed over the cloud. So the cloud has kind of changed the game. >> Yes. >> You guys that started a company that's essentially born in the cloud distributor, which is interesting. So I want you to take a minute to explain Pax8, born in the cloud distributor, what does it mean? How did you get there? >> Yeah, why do we do it? >> What's the story? >> Yeah, that makes sense, the traditional distribution game was on-premise technology. Hardware, printers, software to install, ship it, right? Pick, pack, and ship. Now fast forward to a cloud game, and you'd say, well, do you need distribution? There was a thought at a time that said, well, the channel's going to get disintermediated 'cause all we're going to do is we're just going to go online and we're just going to download it. Customer's going to buy it. I don't need a channel, I don't a distributor. I'm just going to go get what I need. What we learned is that's not the case, because there are some products that you can certainly go and download an app on your phone and know how to do that. But when you're talking about small and medium-sized businesses that might not have in-house IT, it's not so easy as downloading a product. And this was a problem that we wanted to solve as Pax8. Reason we got in the game we actually, many of us came from a born-in-the-cloud software company. And we learned how powerful the channel was. In fact, we started selling direct and realized we just can't scale fast enough, so we committed to the channel. Once we did, we started selling to those partners and you might have thought, yeah, we didn't need distribution. Some of our partners said, yeah, go onto the traditional distributors line card. And when we did that we said, well, they're great at pick, pack, and ship, but as it pertains to a cloud world, it's broken. And so after we sold that company, the CEO of our company, John Street, and another co-founder, we said, well, hey let's go fix a problem, what's out there? And we said, well, distribution is broken for the cloud and that's how Pax8 came to be. >> It's interesting as a student of competitive strategy business, being an entrepreneur myself and having some experience in the channel like you guys have. It's interesting that the same mean comes around the trope, or whatever you want to call it is, oh, the middleman are going to be desegregated and it's direct-to-consumer. Now, I would argue that's true in a lot of cases, it's a bit more efficient to go direct to the consumer. Technology enables that, so downloading basic apps, media's now going direct. Yeah, middleman gets cut out, but that's undifferentiated value. And I think when you look at middlemen, people get confused between a middleman role and a supply chain. So I think what you guys are doing is cracking the code on this value and the supply chain of distribution of software to an edge or channel partner that has a relationship with customers. They don't just change over night. >> This is why we actually, I've been in meetings where we had a born-in-the cloud SaaS company show up at a channel event and at this particular event, we thought this guy was going to come in here and say, "Tell me about how great you are and why I need you." He sat in the chair and said, "Why do I need you?" I wasn't even thinking about this, right, as a channel. A year later he came back and he says, "I understand why I need you. "One, I need partners to help deliver that last mile," because the trust was already there. But more importantly, customers want solutions. And now with, you see what's happening with cloud products, Acronis being one of them, they can pull together multiple things to create a solution. And you really need to have somebody guide that tool. It is not as simple as just downloading an app and making sure that it all work for a business. It just isn't. >> High volume, low margin businesses tend to get disintermediated quickly. >> Right. >> But when there's value creation, you talk about relationship to customers, great channel players have that. And they have costs around servicing that customer. The challenge is when the cost becomes so high (laughs) to provision and serve the customer, gross margin gets hit. >> Ryan: Well this is where-- >> And if so they can eliminate that risk, why wouldn't I look at new supply chain partner or a new partner? >> This is where Pax8 comes into play, which is most partners don't have the in-house technology to build a platform, to shift if they didn't support a recurring subscription revenue model. That's not easy, because when you've shipped a box, you created a bill at that time, but now if you're selling cloud products, you've got to turn it on quickly, you've got to allow somebody to order one, two, three more seats, or gigabytes of something and you've got to make sure that the bill is accurate. That becomes very complex. Just to know what to price things at. >> We've been doing a lot of coverage and reporting on modernization of the Enterprise, cloud computing, of course, Cloud 1.0, Amazon model, Cloud 2.0 is Enterprise, and these nuances that are operationally challenging. But for CureMint, whether it's government, public sector, man, it's 1994! For CureMint, there's no modernization, you're kind of teasing out what I think is like a really big wave coming, which is the modernization of products, marketplaces, and delivery value. >> Yeah, you're right. >> Do you see it the same way? >> 100%. And what's interesting about what you're talking about, even when we started and what we're doing right now, the nuance around what you're saying has, we built things in our platform that we didn't envision in the beginning because the market said this is a problem and we need to fix this. How do you make it easy? And one example of that is, whether you're an Enterprise customer, or you're a partner, a man and service provider, providing multiple cloud solutions to a customer. What they want is, pull it all together, turn it on quickly, and make sure that I can support this technology stack. Look at what Acronis is doing, they've put together data protection and security. This is a very unique combination. Well, a lot of these customers are not just buying that, they are also buying Microsoft products. And so as they grow their stack of technology, they still want to get it as fast as they can, they don't want to pay for things that they don't use. This is the new nuance that we had to solve for this problem with our marketplace is, nobody wants inventory in a virtual world. Pay for what you use, nothing more, nothing less. And you really needed advance automation and integration to make that happen, and that's where Pax8 came in. >> Well, I think that Pax8, Acronis story is interesting because if you think about the demands of the dealer, owner, manager, or the guy who's an entrepreneur or owner of the channel or whatever that partner it is, they have to hire people. The a human resource side of the equation is super efficient, but it's also a razor edge too, right? You overdrive on human labor that has to be a trained out security, right? Why not bring in Acronis in there and Pax8, and I'm up and running with a full-blown security suite cyber protection, new category, I can bring that to market through my channel. >> That's right. >> Trust relationship is there, everything's kind of end-to-end. >> Well, what you think about, what you're saying, it's a part of our model, which is what's sexy that you talk about at first is you've got a cloud marketplace, our partners can use this thing to order multiple cloud products. That's pretty cool because they typically, they wouldn't have the capability to do that themselves. But a part of our model is Pax8 provides Tier 1 support to these partners. To your point, you have to bring on a technician, you may not know whether you're going to sell something new right in the beginning, so the fact that Pax8 can provide sales support and Tier 1 support on that product, allows a partner to figure out whether they're going to sell it, how they're going to sell it, without incurring that cost, because you have a partner like us. >> So what's your positioning relative to the competition? What do you guys offer that's different? How are you guys positioned to the channel versus some other big player? >> What we talk about, and a lot of people say, well, why would you come into this game when you have such big names, big brand recognition? They've got more money, they've got more engineers, they have some tech. But what they didn't have was cloud in your DNA. That's what we represented, so we were untethered by legacy processes, we didn't go through a pick, pack, and ship world. We were built from the ground up to be in the cloud. >> John: DevOps. >> Yeah, DevOps and high automation, this blend. The message we've taken to the street and our focus is, we're blowing up traditional distribution because you needed to think and operate differently to take advantage of the cloud. And so this is our message, our differentiation is solely around this focus on enabling a partner. And if you look at what we are, we're very selective on the cloud products, we a have cloud marketplace, but a lot of people do. The big difference is really we create a partner experience, where we're there by their side. We're not telling them what to do, we're there to make sure that they can grow their cloud footprint. >> You act as fulfillment. >> That's right, we are not-- >> John: You're a full service. >> Yeah, and there's a big difference between saying, I know you want this, can I, I'm going to place the order to, how do you introduce a new technology like Acronis to a partner who's never heard of it? They typically aren't coming in saying, well, I want Acronis and I want to buy it. It's how do you teach them? How do you show they how it works and then how do you support it? >> Channels are very efficient, as well. If you're good, you're gone, you're golden. You'll double down on it. If you suck, you're out, right? They don't tolerate dogma, so I've got to ask you, when you go into the channel, one of the things that they have, and just my observation is, they have a bar about value creation. They want partners that are going to create value. >> Ryan: That's right. >> What's your pitch to them when you're saying, what value do I bring for you, channel partner? >> So is this to Pax8? To the channel partner? >> Pax8 to the channel partner, what value are you bringing? Value creation, bring me value, I'm buying all day long. >> Yeah, Pax8 value, it's two-fold. What we're trying to do is, there's a revenue side of that value and there's a cost-efficiency side to that value. I'll start with the cost efficiency. Partners don't embrace cloud because there's friction in the cloud-buying process. It's difficult to get. The bills are difficult to consolidate, it's difficult to aggregate all of that in one place, and then ultimately make sure that that flows through their business systems. So, the value that Pax8's creating on the simplification of buying cloud, we have a technology that allows them to quickly provision, aggregate the bill, but we don't stop there. Marketplaces that stop there aren't doing enough because we hear about the buyer's journey with customers, and this is where that journey for a partner doesn't start and stop with our marketplace, they actually have tools, like professional service automation tools, where they want what we do with our marketplace to integrate into those tools. So we simplify that whole buying process. That's one huge value add that we have. On the revenue side, most of the partners that we deal with don't have time to go check out cloud products. We do all that vetting and then half our company is sales. So our internal reps help our partners get introduced, and sell-- >> You're driving revenue. >> Yeah, we're driving revenue. I'll give you an example of this value add. It's not a matter of saying, and this is what a lot of marketplaces do, they put up a bunch of tiles and say, well, go pick what you want. You're still faced with the same challenge, well, I don't know about that, I don't recognize the Acronis logo, or maybe I do but I don't know what's in that product." It's really about sales enabling, how do you do that? Well, the one way that we do this is, we go talk to partners about how to grow a cloud practice. We actually go into the field and introduce these cloud products and have partners talk to other partners about how they grew their stack of technology. And then again, we'll demonstrate it, we'll show them, we'll run through the whole thing to sell on their behalf. This is what we find is value add, so a partner doesn't have to do that. It can build a cloud practice, and they can do cost effectively. >> As a disrupter coming into the marketplace, with the cloud mindset, DevOps, you've got a lot of advantages, you can automate, you're driving revenue. Come on, it's a winning formula, you pulled that off, you're going to do well. So I wanted to get your perspective. Looking at this industry, what's the modern channel look like? I've heard all the, oh, the channel's dead, it's changing. Certainly changing. What's the new picture of the channel in your mind? >> Oh, man, I tell you, this is a great question. And one that I'm really excited about because we deal with a lot of partners that had an on-prem practice, where they would drive out and service an account. The new definition of the channel now is one that's untethered by a GEO, because they're taking advantage of cloud services and can get turned on anywhere, and can get supported anywhere. So what we're saying is, man and service providers that are showing up, and they're acting as an outsourced IT and a virtual CIO to a small business. Now to do that, what they're doing is, they're building a stack of technology, saying, when you sign with me, this is how I interact with you, I have a stack of technologies, I'll deliver it, configure it, I'll answer questions for you. And they're going even further then that. These guys are also partnering with other partners who have specialty, because what they realize is, to be a generalist it's hard to win. Now you got to be niche razor focused, because what we see is customers are now educating themselves before they call a partner, right? 70% of the research is done before they even call, so you'd better know what you're doing. And so what we're seeing is that the channel of the future is one that's focused on their specialty, they're not afraid to partner with other partners who have a specialty that their customers may want. And everyone is dealing with automation and integration. So it has to happen at the speed of light. >> John: Time to value. >> Time to value, speed to market. This is a progressive partner today, and they're growing. They're growing rapidly and they're buying each other. There's a huge M and A activity now because they recognize there's a fragmented market. So if you're really good at your focus, you really can take advantage of that. >> So speed, agility, profitability, customer satisfaction? >> Core drivers, core drivers. But then, what you need though is, there's no reason to go it alone. This is where at Pax8 you would say, well, okay, that's value for the service provider, why do you need Tier II? Well, you need to aggregate these solutions and bring it into one place for that partner. You need somebody to help them out to be by their side. This is something that we're finding, this is a part of the value chain. >> Well, I think, you know certainly directive consumer is happening, but there's still value creation opportunities out there in the new shift. Acronis is doing a good job with you guys, you think? Acronis good for you guys? >> I tell you what, Acronis is blowing up with us. We were just talking to Serguei about this, like why, why is this happening? Well, one of the things that they've done, that's really adapting to what the market wants is one, they put multiple solutions together in a single place and made that easy. Two, they made an upgrade to their user interface, so it's really easy to interact with. And so you can have a great technology, but if it's not easy to work with, customers are moving on, that's the state of reality today in the market. They put those things together at a great price, and they're maniacal about support, and so they're built to make sure that partners and their customers sort of get up and running with their product quickly. And add to that, then we've got integration with that platform and ours, now it's like it's a perfect opportunity, because now we can all move quickly, automated. This is why it's a great union. >> Ryan, thanks for coming on and sharing your insight. Take a minute to give a quick plug for Pax8. What are you guys working on? What are you guys looking to do, hire, take new territory? What's the plug? >> Pax8 is blowing up distribution and we're growing rapidly. One of the things we're focused on right now is that with the focus on the customer experience, and digitizing operations, what we're focused on now is thinking differently about how you target your customers and what they need. If you take a page of the Amazon marketplace playbook, and I'm talking about consumer products, they're really taking advantage of understanding the characteristics of each buyer. This is what Pax8's focused on for the future, so that you can really have a more targeted conversation, and focus and marketing campaign with your customers. And we're going to deliver that with our platform. >> And being cloud guys, I'm sure data's a big part of it? >> Data's a big, this is the future. We're hiring data scientists to really be prescriptive about how to target and what comes next. >> Ryan, thank you so much for sharing that insight. Good stuff, congratulations. Looking forward to tracking your progress in the industry. Thanks for coming on. >> Thank you so much, John, I appreciate it and, yeah, I look forward to talking to you in the future. >> Okay, it's theCUBE coverage from Miami Beach for Acronis' Global Cyber Summit 2019, I'm John Furrier, thanks for watching. (upbeat music)

>>From Miami beach, Florida. It's the queue covering a cryonics global cyber summit 2019 brought to you by Acronis. >>Okay. Welcome back everyone. This is the cubes coverage here at the Chronis global cyber summit 2019 I'm John furrier, host to the cube. We're Miami beach at the Fontainebleau hotel with a second day. Excited to have this next guest on Christian Garcia, senior vice president of finance and administration at the chauffeur housing ShipIt housing Institute of technology. Did they get it right? Almost right. housing. welcome back. Welcome to the cube. Good to see you. Good to see you. Thanks for having me here. This is a really cool story because you guys are doing something very entrepreneurial, right, with education, right. Okay. Inspired by the founder of a Chronis. Exactly as well. He's got. He's made a lot of money in his day, so he's doing some good things with it. Um, but this is an interesting opportunity for you to take a minute to explain what this Institute stands for. >>It's sit for short. >> Yeah, so sat actually as a name Schaffhausen Institute of technology. So we are actually starting up a university in Schaffhausen in Schaffhausen. These a beautiful tiny CD in Switzerland, 30 minutes or 30 minutes from the Zurich airport, which is the biggest airport in Switzerland, uh, close to Germany at the border with Germany. And uh, so that's kind of your, in the center of Europe and that's where we plan to have our main campus. Now let me tell you this story. How about the vision about target, his vision on these, on this project? Um, he, he said that, you know, uh, he needs to have skills in 10 to 15 years time that nowadays at the institutions that do not do not, do not bring, um, there is the need of computer scientists that are not enough computer scientists and we are having emergent technologies and these is something that provides us with tremendous opportunities, which we cannot even imagine nowadays what type of opportunities and to be on the forefront there. >>That's why we want to found these are, we have founded the Schaffhausen Institute of technology. >> Chef housing is a technology just for share. The day was just two months ago, couple months ago. It was two months ago where we, where we have started up the legal structure and now we are really laying the foundation. We have to find some that are kind of secured for for the next 12 to 18 months. And um, we are, you know, defining the strategic advisory board. We are setting up the curriculum for our students. And so it's everything up and running and to be defined. So risk is right at the creation present at creation. We are talking about this as a, this is the origination story. Exactly. Of the shelf house in Institute of technology. Exactly. What's the vision? >>I mean obviously getting skills for jobs that are our century, our time that's having been teaching in universities and before I get back. But is it about being open and what's the vision is just Switzerland is going to be global. Can you just share, what do you guys are thinking? >>Sure, absolutely. So basically what we are trying to do is to design a curriculum in um, computer science and physics because we think that computer science or present the software in physics represents the hardware. And these two things need to be combined in a entrepreneurial mindset or with an entrepreneurial mindset, which means that we also want to foster the transformation process and the anti entrepreneurship. Now, let me go back to the software path. Uh, our curriculum will cover, um, software engineering, cybersecurity. That's why we are here today. Uh, the curriculum we also cover, um, on the physics part. On the hardware part, we'll cover, uh, quantum technologies, uh, quantum physics and also new materials. Um, and these will be kind of the foundation that will build the curriculum for students, computer scientists to have physics and physics to have computer science in their curriculum so that at some point in time they can come together and to research together. >>This is the digital transformation that we're talking about. The, the intersection and the confluence of physical reality. A world that we live in, whether it's a baseball game or a soccer match to the digital culture, they're not mutually exclusive anymore and they're together. And then the impact is profound. I can only imagine. IOT, industrial, IOT, airplanes, cars, electricity, electronic batteries, all these things, correct. It's software and digital. And physical material. Exactly that you guys are thinking. >>Exactly. Exactly that and actually also considering the industry, talking to the industry, talking to chief information technology officers around the world to understand what they need are and what type of they believe of skills are needed in in 10 to 15 years time. And that's what we want to build up now to get >>well you guys car gotta go, you gotta go faster because there's jobs now. There's thousands of jobs right now in cybersecurity. There's thousands and thousands of jobs for provision and cloud computing. Amazon educate. We talked to them all the time. They just can't get the word out fast enough that Hey, if you're unemployed there's no excuse for being unemployed. Write down there's so many new jobs. But because someone didn't go to the linear school and exactly know go step by step over the years and now you can level up very quickly. Exactly for certification. But you guys are taking a much more bigger idea around real kind of masters level. Is that what it is? Undergraduate masters level? What's the level of, actually we, we, we are starting >>out with this university and we have already students that are at our or with our partner universities currently in Singapore with NUS. And we then move to Karnak and Molly here in the U S um, in order to have it, we'll do a degree. So that's a unique opportunity to already start up with some presence, uh, in, in education. And uh, you ultimately, they will be then acquired. So we hope by, by, by, by the industry and the were terrific. Elon Musk is in there somewhere innovating with who knows what's next out there and he's around. And next Sergei is out there too. A exactly. Exactly. So just look at our, at our home page, look at the curriculum, which we are currently defining now. Eh, that would be, that would be great on sit.org take me through how it works. I know you're just starting, but as you guys look at the world, I mean, first of all, I can see, I can see the attractiveness of a dual degree. >>Yeah. Because most kids get bored in college. They're freelancing anyway. They're learning on their own. I get that. But I can S so I want, so as you guys start building it out, what's going on? What's going, how's it work? What are you guys doing? You're recruiting tickets through the, the factory of work that needs to get done, if you will. What's the workflows look like? What's happening right now? So currently, I mean, we are talking about the university because we, we have students and we will have students and we weren't to have the best talents, uh, globally available. And that's why we are building institution that attracts those talents. And these is kind of the first priority to have, do I have the talents to get the tens to get students come to, to, to sit? And obviously the second part is he said, well, talking to the CEOs and Tito was in to understand what are the needs in 10 to 15 years as an outcome of this digital transformation. >>I mean, the world is computerized. Uh, as you just mentioned before, there are not enough computer scientists currently available. So four out of five companies in Switzerland direction also globally are lacking. Uh, of computer scientists and they understand, you know, at what the digital transformation means. And that's something that we really try to understand as well to build it up the curriculum. What's the timeline of starting with students? Is you right away? Do you have a location? Is there a building, I mean, give us a timeline. When did classes start? When you start bringing people in? Is it happening now? I mean, absolutely. So, so actually currently we are, we are hunting at, at uh, at some campus locations, looking at some campus locations, each a thousand where our main campus will be, will be located. Um, at the, at the, at the same time we are really building buildings structure. >>So we are appointing the strategic advisory board will be, we twill direct, eh, the curriculum of the university. Um, and, and which is represented already by, uh, very, um, great scientists. One of them, the president of the strategic advisory board being professor Dr. Noble selloff, which is a Nobel prize winner. And which actually brings in that, that new ma new material, um, science in our physics curriculum. So that's another thing that we are currently trying to do to build up that governance appropriate components. And third element that we are looking at is also to attract uh, industries and companies that sponsor the students. And that's actually an attractive ecosystem that we are trying to build up to combine science education and also entrepreneurship in business. In order to foster that, which means that we are looking at the campus, we are setting up a research center and I'm talking about two or three years down the line, the research center and then also a tech park where we can commercialize the innovation that the science green Springs in. >>So all in all we really aim to have a closed ecosystem and self sustaining ecosystem. Hopefully that we are going to establish. It's a really big idea. Congratulations. It's bold. It's and it's relevant. Absolutely. So I got to ask you the question, how do you finance all this? Who's paying for it? So tell us how do we get funded? It's very important. Otherwise we pull in, start up with such a tremendous pace. Uh, actually the vision is, is from Sergei Velo self, uh, founder and CEO of Acronis. Um, he, he's, Hey has actually secured the initial founding of the institution and now really we need to have more partners on board in order to make this self sustaining education edge educational system system as sustainable as you are going to be tuition base or scholarship based. Have you guys thought about that? Um, in terms of students it would be tuition-based ah, that's a classical classical model or at least at least in Switzerland and obviously to get the industry sponsoring students in order to also down the line employee them later on. >>That would be the idea situation. Nice vision for Sergei and nice gesture. But you've got to look at what his business is doing. They created a category called cyber protection. Extending the benefit to him is more candidates know physics edge. So why not? This is a great vision. Absolutely the win-win. Absolutely. And we all believe in that the entire, um, you know, stand up team believe in that vision. That's where we are here and building up this institution. Well when you need to go global will be in Silicon Valley and waiting for you guys to come there and collaborate with us there. I hope. I hope that because we want to compliment each other. As I mentioned, computer scientists, our need is globally and obviously also in the Silicon Valley and why not? I think the collaboration aspect is going to be a big part of the growth as you guys get >>settled in on the the first use case in Shevon housing. Exactly. You know, and get that built out, but I think with digital technologies, I think there'll be a great collaboration, bring some good talent in as faculty and advisors and exactly get the flywheel going except congratulations. Thanks for coming on. The key, the education game is changing with modernization of a global impact of technology for good. You're seeing the landscape of innovation hit education. This is another great example of it. Super proud. The interview. Thanks for coming on and sharing the insights. The world continues to evolve. Of course, the cube is, they're watching every turn. I'm John Feria here in Miami beach for the Crohn's global cyber summit. 2019 deck with more coverage after this short break.

>> Announcer: From Miami Beach, Florida, it's theCUBE, covering Acronis Global Cyber Summit 2019, brought to you by Acronis. >> Okay, welcome back, everyone. It's theCUBE's two days of coverage here in Miami Beach at the Fountainebleau Hotel for the Acronis Global Cyber Summit 2019. I'm John Furrier, your host, James Slaby, the director of cyber protection for Acronis is here on theCUBE. Thanks for coming in, it's great to see you. >> John, great to be here, thanks. >> So, we talked on the day one reception that we had. We were having a chat about the cyber protection positioning, and how the confluence of data protection is emerging in this new modernization of the enterprise. >> Sure. >> Sports teams are out there, it's obvious pick customers, so it's happening. >> Absolutely, it's something that the analyst community has been talking about for years. And certainly, I think people in the data protection space, on the vendor side, in the cyber security space, have been seeing it coming. I think there's been a little bit of weariness of it on the end user side, particularly if you look at the large enterprise space where you've got fairly large teams and they're specialized. You've got the security folks on one side, data protection IT operations on the other, and often different budgets, they don't necessarily like each other, or talk to each other a whole lot, sometimes competing agendas. But frankly the way the world is going with the kind of explosion in data, the fact that data's growing five times faster than IT staffing is able to grow, and with this explosion in the threat environment, not just cyber criminals though they've gotten a lot cleverer in recent years, much more industrial in their methods, basically I like to compare them to Salesforce, but evil, right? So, they've industrialized their production methods, >> And they're causing disruption. They are disrupting the continuity of a business by hijacking their data before there is ransomware or zero-day malware, it's here, it's happening all the time. >> Yeah, and it's not just the criminals now. You have state actors involved. North Korea basically runs itself as a criminal enterprise these days to fund the regime because of economic sanctions. And they're very well-funded, they're very expert, and with tools like ransomware and cryptojacking at their disposal, they're sustaining themselves. So, between the threats on all sides, and the explosion in data, the operation side of the house, and the security side of the house really have to come together. It's not a luxury that frankly small to medium businesses have ever had. You typically have much smaller staffs. It's one, two, maybe three people handling all of that. So, in some respects that convergence is going to be a welcome simplification of life to them. >> What's interesting to me and I want to get your thoughts and reaction to this is that with the Cloud computing, and this new modern era of compute power and software defined stuff, you're seeing categories that used to be niche white spaced categories become full-blown important areas. I'll give you an example. Network management turned into observability. Configuration management's now automation. So, at the plumbing level infrastructure when they start to see stuff emerge that was once a feature and now important. Data protection involves a cyber protection. Again, it's elevating an importance because the game's changing, but it's still the same. It's data protection, but data's everywhere, but cyber's the driver. This is an interesting dynamic, and I think you pointed that out, again, on our first night, it's highlighted there. Are all the analysts seeing it this way? And because we're seeing, observability, what is observability? It's network management on steroids. So, this new modern architecture of an enterprise is our thinking like a system, and cyber protection is a new, I guess category. Well, it's not really a new category, it's data protection or cyber threats and cyber things. >> I think it's a useful coinage to capture in a couple of words, this convergence of classic data protection disaster recovery kind of functionality with cyber security. I do see the analyst community having anticipated the trend by a couple of years, Forrester with their zero trust model is a slightly different perspective on it, but ultimately it puts data at the center of everything. You've got to protect data, you've got to protect people from stealing it, you've got to defend against people tampering with it. And once you start putting data at the center of your world, then all those functions whether they're classic IT operations functions, or what we historically associate with cyber security, it doesn't make a whole lot of difference. The challenge is to find ways to achieve those basic functions in a way that is managing the complexity, you've got an explosion of data sources, an explosion of data volume, here comes the Internet of things, here comes 5G wireless, suddenly everyone's going to be storing 10 terabytes of data on their smart phones. So, you've got a lot more data in a lot more places to defend against. And the bad guys are coming up with increasingly sophisticated new ways to get at it. So, looking at it as data first, and I think what our MSP and VAR partners, and what their customers are asking for are ways to help us manage that process in a way that's simpler to manage, that's cheaper, and can defend against these kind of new more sophisticated threats. >> More threats, the complexity is increasing, data's increasing, the costs are increasing, and it all revolves around the digital business as data, and the Red Sox and the sports teams encapsulate that because their product's on the field, but also they have a business to run, they got fans to serve, their consumers, it's a digital business model, it's a data. >> Yeah, they look sort of like extreme examples today. Our business doesn't need our F1, our Formula One partners to capture the racetrack data from a rocket ship with a 1,000 sensors in it, and real time telemetry, but that's only looks extreme today. We're not very far away from having to handle that kind of data in real time in our business. So, in the same way that the Red Sox are capturing all kinds of video information and analytics, and analyzing the performance of their players, we're going to be doing similar kinds of data collection and processing on business information in just a few short years. So, it's useful to have leading edge partners like that, but the rest of us aren't really far behind-- >> Well, I think the platform play is very interesting. You guys put a lot of work into that. Obviously you can't do that overnight. Many years have gone into that. Having an open ecosystem is key. You mentioned VARs and partners earlier, this is a big part of the business model of Acronis, and so that's ultimately the true test of a product because the channel is a very efficient business mechanism. >> Yes. (laughs) >> If it works and it's profitable, and creates happy customers, their customers are happy, they keep their customers. They're a very tough crowd too as well. What are your partners in VARs and ISVs, what's in demand of them from their customers? Because they're selling your product as a solution, putting servers to run, but they have customers too, and they're looking for them to be a player and serve them well. What are they hearing? What's their customer customer? >> Yeah, you're right, they're absolutely, our partners are our key source of intel on what the buyers ultimately want. And again your typical buyer, let's say it's a small or medium business for argument's sake here, is confronting the fact that there's a giant labor shortage in cyber security talent at the moment. So, in two years there'll be 3 1/2 million cyber security job vacancies worldwide. I tell young people I know that are coming out of high school or college, go into cyber security, there going to be a lot of work there in the coming years. This is advice I just gave to my nephew. And they can't compete for the existing talent that's out there. If you're a great cyber security talent, you're going to want to work for a managed service provider where you're constantly facing new challenges, new customers, new technologies, it's the great Petri dish to learn and hone your craft, and move up in the world or maybe you go into the large enterprise space, cyber protection staff there where the pay is a little bit better. It's very tough for an SMB to compete with that. They just can't find, retain, or pay the talent that they need to keep their own data secure. So, that's a huge one just from-- >> And they're also under a lot of pressure because the way these supply chain relationships work is I could have the best security on the planet, but if you're my business partner and you don't have good data hygiene, my data's exposed through you because we're working together. Listen, this is a really dynamic. >> Yeah, and it's kind of an interesting, it's a bit of ancillary topic here I think, but just a tax on elements of the supply chain like managed service providers themselves as something that has raised its head. So, as a buyer, you have to evaluate whether your provider is taking appropriate steps to protect themselves because if they can't do that, then you will be someone who's intimately connected with them that will be vulnerable to the same evils that befall them. >> I hear that a lot from people that are selling security, and, or data protection to customers is that there's now requirements in the sales process to do it, and I don't want to say audit, that's not the right word, the word we're looking for, but inspection of how the data's being handled. Obviously, you've got GDPR out there which is a whole 'nother animal, but this is now a real criteria so, IMSP, I have to build that out myself. Is this where they are using you guys? This is where there seems to be a dynamic where you guys are doing well, certainly ransomware's been a big part of it too. >> So, they have a couple of challenges, our partners do. One is beating that customer requirement to protect me, make sure you've got the expertise that I can't retain to provide security for my data, do it in a way that's cheap, do it that it will grow as my data volumes are growing, and automate it wherever possible, right. I do not want to have to worry about this stuff. The MSPs have both technical and business challenges themselves. From the technical side their problems are similar to the customer's. They need any solution they have to be simple, they need it to be cheap, automation is super important to them, and they need to keep ahead of the security gap. From a business perspective you've got additional challenges like, how do I grow my individual, my average revenue per user? How do I offer additional services that are going to increase my traction with them so that I can reproduce churns, that I want to be stickier, right? How do I get hooks into my existing billing and provisioning kind of systems? So, the customer has a range of challenges that are reflected mainly in technical terms in the service provider, but the service provider has their own businesses sectors that are unique. And this is in part how things like Acronis Cyber Protect at cyber infrastructure, and the opening up of Acronis Cyber Platform so that their ISVs and the providers of the tools that they're using can get tighter integration into the infrastructure that they-- >> You guys are now just open APIs, just opening up the API's developer network and then the customer portal, big news here at the show. >> Yes, yup! >> You guys were holding back from us, well, now you've got it covered, but this speaks to the ecosystem. Now, I got to ask you about the competition, the industry, RSA, these big conferences, buzzword bingo goes on all the time, hype is like, I got this, I'm throwing a platform. >> What's your favorite game? >> I wouldn't be surprised if cyber protection, cyber protect is a category as it emerged people start whitewashing. We've got a platform, so, people are talking the platform game. What is hype and reality? Take us through unpacking your opinion where the hype and reality, because customers are trying to squint through the noise, and look at the hype versus the reality. How do you distinguish between what's real and what's not? >> Well, I would say a useful starting point is, allow me to toot Acronis's horn here with what we have rolled out with Acronis Cyber Protect. So, it starts with our classic value proposition which is backup and disaster recovery. The next step is something that we got into the market with several years ago which is anti-malware that is buttressed by machine learning and artificial intelligence. So, the goal here is not just to be able to identify, and stop known threats by their signatures, the classic antivirus approach given the increasing sophistication of malware developers, you have to be able to identify stuff by the way it behaves. So, even if you've never seen it before you have to be able to say, that looks suspicious, I've got to stop that, and do it in a way that's smart enough that you're not halting up innocent processes that might be doing something that vaguely looks suspicious, right? You've got to stop the real threats and minimize the false positives, right. Now add to that things like health and performance monitoring. So, the capability from the exact same console to monitor the health of your hardware, including being able to predict drive failure rates, again, with the help of artificial intelligence to the point where given that half your hard drives are going to fail in five years, we can predict within 98% accuracy when a hard drive is going to fail, and that's a giant way to head off a big data loss is move that data before the hard drive fails, but also monitor the performance of your network, your applications, your operating system, as well as hardware performance. >> It's an end to end holistic view of data. >> Yeah, it's something that you might be able to do with multiple tools and maybe cruder tools, like the smart capability for drive analysis has been around for a while, but the name hasn't aged well. Health monitoring, remote desktop, right. So, the ability, really important to an MSP to reach out and troubleshoot issues on a remote desktop including things like managing their windows defender environment, so that you're making sure that the end user isn't violating your security policies because they think it might improve their performance a little to shut off some features of Windows Defender, right? Where I think it really gets interesting is in capabilities like vulnerability assessment. So, the ability to scan an endpoint and figure out which revisions of their operating system, their traditional productivity applications, all their third party applications, where they are relative to the patches that are out there to close known vulnerabilities to malware threats. And then based on that proceed to patch management where you figure out a sensible, scalable, manageable way to install patches on all those devices across your organization which is part of the daily grind for operations people, frankly. So, giving them all of those tools in one place with a single interface, oh, by the way let's throw in URL filtering, another capability that really will keep your users out of a lot of trouble, keep them from visiting sites where malware loves to lurk, because where pirated software and these kind of things, places you shouldn't go that people tend to go, and invite the evils of the world. So, imagine all these things on a single pane of glass that you need one organization with one training regimen to operate, and suddenly you see the kind of efficiencies that you're going to generate as a service provider in terms of lowering your own costs, automating a lot of the functions that you previously had to do manually, and so on. Sorry, I had to finish that, sorry. >> No problem, that's a huge-- >> That's the rest of the story on cyber protection. >> Well, this highlights to me what I think is a very comprehensive offering. You guys have comprehensive storing. You have infrastructure, a platform, and then a set of services, that's deep, deep bench of technology. >> Well, there's a lot of innovation in there as well. So, this was something that had never occurred to me that fortunately occurred to our RND people which is the notion of why don't we start scanning our backup images instead of relying on endpoint scans. So, we've got a recent image backup, why don't we scan our copy of it? We can do the vulnerability assessment, the patch management of it, and, oh, by the way, that means that we can do things like if you've got custom applications that maybe sometimes don't play nice with newer revs of the OS or patches, you can actually test that offline. Do those upgrades, install those patches, run the application, if it doesn't work, if it gives you performance problems, or functionality problems, you know not to roll those patches out across your environment. And those are kind of clever things that, oh, by the way, oh, this is the burden and potential conflicts of scans on the endpoints. So, again, I-- >> That shows the benefit of the ISV market too, as more stuff comes on, the benefits of the collective ecosystem getting right back into the customer-- >> And it works a couple of ways. So, some of my independent software vendors are going to integrate functionality from Cyber Protect into their products in a way that is sort of invisible. They'll be Acronis inside, but their customers won't necessarily know it. It also means that MSPs and the vendors that serve them with a variety of tools can more tightly integrate their functionality with Cyber Protect at the core of the managed service providers offering, and provide value to both sides of that equation as well. >> You guys have great validations platform, solutions, robust ecosystem, now you'll bring out the developers, so congratulations. James, thanks for coming on, and sharing the insight, it's appreciated. >> John, thanks so much, this was great. >> All right, Cube coverage here in Miami Beach for the Acronis Global Cyber Summit 2019. I'm John Furrier, stay with us for more day two coverage after this short break. (upbeat music)

>> Narrator: From Miami Beach, Florida, it's theCUBE, covering Acronis Global Cyber Summit 2019. Brought to you by Acronis. >> Okay, welcome back everyone. It's theCUBE's two day coverage of Acronis' Global Cyber Summit 2019, here in Miami Beach, at the Fontainebleau Hotel. I'm John Furrier, host of theCUBE. We're with Katya Fisher, Partner Chief and Chief Privacy Officer at Greenspoon Marder. Legal advice is right here on theCUBE, ask her anything. We're going to do a session here. Thanks for coming on, appreciate it. >> Thank you very much, I'm going to have to do the little disclaimer that all lawyers do, which is, nothing here is to be construed as advice. It's just opinions and information only. >> I didn't mean to set you up like that. All kidding aside, you closed for the panel here for Acronis' conference. Obviously, cyber protection's their gig. Data protection, cyber protection. Makes sense, I think that category is evolving from a niche, typical enterprise niche, to a much more holistic view as data becomes you know, critical in the security piece of it. What was on the, what were you guys talking about in the panel? >> Well, so, the first issue that you have to understand is that cyber protection is something that has now become critical for pretty much every individual on the planet, as well as governments. So something that we talked about on the panel today was how governments are actually dealing with incoming cyber threats. Because now, they have to take a look at it from the perspective of, first of all, how they themselves are going to become technologically savvy enough to protect themselves, and to protect their data, but also, in terms of regulation and how to protect citizens. So, that was what the panel discussion was about today. >> On the regulatory front, we've been covering on SiliconANGLE, our journalism site, the innovation balance, is regulatory action helpful or hurtful to innovation? Where is the balance? What is the education needed? What's your thoughts on this, where are we? I mean early stages, where's the progress? What needs to get done? What's your view on the current situation? >> So, I'm an attorney, so my views are perhaps a bit more conservative than some of the technologists you might speak with and some of my clients as well. I think that regulation is, as a general matter, it can be a good thing. And it can be quite necessary. The issues that we see right now, with regard to regulation, I think one of the hottest issues today is with respect to data laws and data privacy laws. And that's obviously something that I think everyone is familiar with. I mean take a look at, in the United States alone. We've seen the city of Baltimore dealing with breaches. We've seen other parts of the government, from the Federal level all the way down to municipalities, dealing with breaches in cyber attacks. We've seen data breaches from banks, Capital One, right? I believe Dunkin' Donuts suffered a breach. Equifax, and then at the same time we've also seen individuals up in arms over companies like 23andMe and Facebook, and how data is used and processed. So data seems to be a very very hot button issue today across the board. So something that we're really thinking about now is, first of all, with respect to the regulatory climate, how to deal with it, not only in the United States, but on a global level, because, when we talk about technology and the internet right, we're in an era of globalization. We're in an era where a lot of these things go across boarders and therefore we have to be mindful of the regulatory regimes in other places. So, I'll give you an example. You might be familiar with the GDPR. So the GDPR is in the European Union. It's been in effect now for the last year and a half, but it affects all my U.S. clients. We still have to take a look at the GDPR because at the end of the day my clients, my firm, might be dealing with foreign companies, foreign individuals, companies that have some sort of nexus in the European Union, et cetera. So because of that, even though the GDPR is a set of regulations specific to the European Union, it becomes extremely important in the context of the United States and globally. At the same time, the GDPR has certain issues that then end up conflicting often times with some of the regulations that we have here in the United States. So, for example, the right to be forgotten is perhaps the most famous clause or part of the GDPR and the right to be forgotten is this concept in the GDPR that an individual can have information erased about him or her in order to protect his or her privacy. The problem is that from a technical's perspective, first of all, it's an issue because it becomes very very difficult to figure out where data is stored, if you're using third-party processors, et cetera. But from a regulatory perspective, the conflict comes in when you take a look at certain U.S. laws. So take a look for example at banking regulations in the United States. Banks have to hold some types of data for seven years and other types of data they can never delete. Right? Lawyers. I am licensed by the New York State Bar Association. Lawyers have their own rules and regulations with regard to how they store data and how they store information. HIPAA, medical records. So, you see these conflicts and there are ways to deal with them appropriately, but it becomes some food for thought. >> So it's complicated. >> It's really complicated >> There's a lot of conflicts. >> Yeah. >> First of all, I talked to a storage guy. He's like data? I don't even know which drive that's on. Storage is not elevated up to the level of state-of-the-art, from a tracking standpoint. So, it's just on the business logic is complicated. I can't imagine that. So, I guess my question to you is that, are you finding that the jurisdictional issue, is it the biggest problem, in terms of crossport and the business side or is the technical underpinnings, that with GDPR's the problem or both? What's your-- >> I mean it's both, right? They're a lot of issues. You're right, it's very complicated. I mean, in the United States we don't have some sort of overarching federal law. There's no cyber protection law in the United States. There's no overarching data protection law. So, even in the U.S. alone, because of federalism, we have HIPAA and we have COPPA which protects children and we have other types of acts, but then we also have state regulations. So, in California you have the California Privacy Act. In New York you have certain regulations with regard to cyber security and you have to deal with this patchwork. So, that becomes something that adds a new layer of complexity and a new layer of issues, as we take a look, even within the U.S. alone, as to how to deal with all of this. And then we start looking at the GDPR and all of this. From a technical perspective. I'm not a technologist, but. >> Katya, let me ask you a question on the (mumbles) and business front. (mumbles) I think one of the things. I'm saying it might or may not be an issue, but I want to get your legal weigh-in on this. >> Katya: Sure. >> It used to be when you started a company, you go to Delaware, very friendly, domicile in Delaware, do some formation there, whether you're a C corp or whatever, that's where we tend to go, raise some money, get some preferred stock, you're in business. >> Is there a shift in where companies with domicile, their entity, or restructure their companies around this complexity? Because, there's two schools of thought. This brute force act, everything coming at you, or you restructure your corporate formation to handle some of the nuances, whether it's I have a Cayman or a Bermuda... whatever's going on in the regulatory regime, whether it's innovative or not. Are people thinking like that? Or, what's your take on it? What's some of the data you're seeing from the field around, restructuring around the problem? >> So, with respect to restructuring, specifically around data laws and data protection laws, I'm not seeing too much of that, simple because of the fact that regulations like the GDPR are just so all-encompassing. With respect to companies setting up in Delaware as opposed to other jurisdictions, those are usually based on two issues, right, two core ones, if I can condense it. One has to do with the court system and how favorable a court system is to the corporation, and the second is taxes. So, a lot of times when you see companies that are doing all of this restructuring, where they're setting up in offshore zones, or et cetera, it's usually because of some sort of a tax benefit. It might be because of the fact that, I don't know, for example, intellectual property. If you have a company that's been licensing IP to the United States, there's a 30% withholding tax when royalties are paid back overseas. So a lot of times when you're looking at an international structuring, you're trying to figure out a jurisdiction that might have a tax treaty with the United States, that will create some sort of an opportunity to get rid of that 30% withholding. So, that's where things usually come into play with regard to taxes and IP. I haven't seen yet, on the side of looking for courts that are more favorable to companies, with respect to data privacy and data protection. I just haven't seen that happen yet because I think that it's too soon. >> How do companies defend themselves against claims that come out of these new relations? I mean GDPR, I've called it the shitstorm when it came out. I never was a big fan of it. It just didn't. I mean, I get the concept, but I kind of understood the technical issues, but let's just say that you're a small growing business and you don't have the army of lawyers or if someone makes a claim on you, I have to defend it. How are companies defending themselves? Do they just shut down? Do they hire you guys? I mean, obviously lawyers need to be involved. But, at some point there's a line of where having a U.S. company and someone consumes my media in Germany and it says, hey I'm a German citizen. You American company, delete my records. How does that work? Do I have to be responsible for that? I mean, what's? >> So, it's really case-by-case basis. First of all, obviously, with regard to what I was talking about earlier, with respect to the fact that there are certain regulations in the U.S. that conflict with GDPR and the right to be forgotten. If you can actually assert a defense and sort of a good reason for why you have to maintain that information, that's step one. Step two is, if it's some complaint that you received, is to delete the person's information. There's an easier way to do it. >> Yeah, just do what they want. >> Just comply with what they want. If somebody wants to be off of a mailing list, take them off the mailing list. The third is, putting in best practices. So, I'm sure a lot of things that people see online, it's always great to go ahead and obtain legal counsel, even if you're consulting with a lawyer just for an hour or two, just to really understand your particular situation. But, take a look at privacy policies online. Take a look at the fact that cookies now have a pop-up whenever you go to a website. I'm sure you've noticed this, right? >> John: Yeah. So, there are little things like this. Think about the fact that there are, what is known as clickwrap agreements. So, usually you have to consent. You have to check a box or uncheck a box with respect to reading privacy policies, being approved for having your email address and contact information somewhere. So, use some common sense. >> So, basically don't ignore the prompt. >> Don't ignore the problem. >> Don't ignore it. Don't stick your head in the sand. It'll bite you. >> Correct. And the thing is, to be honest, for most people, for most small companies, it's not that difficult to comply. When we start talking about mid-size and large businesses, the next level, the next step, obviously beyond hiring attorneys and the like, is try to comply with standards and certifications. For example, there's what is known as ISO standards. Your company can go through the ISO 27001 certification process. I think it costs around approximately $20,000. But, it's an opportunity to go ahead, go through that process, understand how compliant you are, and because you have the certification, you're then able to go to your customers and say, hey, we've been through this, we're certified. >> Yeah. Well, I want to get, Katya, your thoughts, as we wrap up on this segment, around Crypto and Blockchain. Obviously, we're bullish on Blockchain. We think this is a supply chain. (mumbles) Blockchain can be a good force, although some think there's some work needs to be done on the whole energy side of it, which is, we would agree. But, still. I'm not going to make that be a wet blanket of excitement. But cryptocurrency has been fraudulent. It's been. The SCC's been cracking down in the U.S., in the news. Lieber's falling apart, although, I called that separately, but, (laughing) it had nothing to do with that Lieber. It was more of Facebook, but. Telegram. We were talking about that, others. People are getting handcuffed on this stuff. They're really kind of clamping down. But, overseas in Asia, it's still an unregulated, seems to be (mumbles) kind of market. Your advice to clients was to shy away, be careful? >> My advice to clients is as follows. First of all, Blockchain and cryptocurrency are not the same thing. Right? Cryptocurrency is a use case coming out of Blockchain technology. I think that in the United States, the best way to think about it is to understand that the term cryptocurrency, from a regulatory perspective, is actually a misnomer. It's not a currency. It's property. Right? It's an asset. It's digital assets. So, if you think about it the same way that we think of shares in a company, it's actually much easier to become compliant, because, then you can understand that it's going to be subject to U.S. securities laws, just like other securities. It's going to be taxed, just like securities are taxed, which means that it's going to be subject to long and short-term capitol gain, and it's also going to be subject to the other regulatory restrictions that are adherent to securities, both on the federal and state level. >> It's interesting that you mentioned security. The word security. If you look back at the ICO craze, internet coin offerings, crypto offerings, whatever you call it, The people who got whacked the most were the ones that went out as a utility tokens. Not to get nerdy on this, but utility and security are two types of tokens. The ones that went out and raised money as the utility token had no product, raised money using the utility that doesn't exist. That's essentially a security. And, so, no wonder why they're getting slapped. >> They're securities. Look, Bitcoin, different story, because Bitcoin is the closest to being I guess, what we could consider to be truly decentralized, right? And the regulatory climate around Bitcoin is a little bit different from what I'm talking about, with respects to securities laws. Although, from a tax perspective, it's the same. It's taxed as property. It's not taxed the way that foreign currency is taxed. But ultimately, yeah. You had a lot of cowboys who went out, and made a lot of money, and were just breaking the law, and now everyone is shocked when they see what's going on with this cease-and-desist order from the SCC against Telegram, and these other issues. But, none of it is particularly surprising because at the end of the day we have regulations in place, we have a regulatory regime, and most people just chose to ignore it. >> It's interesting how fast the SCC modernized their thinking around this. They really. From a speed standpoint, all government agencies tend to be glacier speed kind of movement. They were pretty fast. I mean, they kind of huddled on this for a couple months and came out with direction. They've been proactive. I got to say. I was usually skeptical of most government organization. I don't think they well inform. In this case, I think the SCC did a good job. >> So, I think that the issue is as follows. You know, Crypto is a very very very small portion of what the SCC deals with, so, they actually paid an inordinate amount of attention to this, and, I think that they did it for a couple of reasons. One is because, you asked me in the beginning of this interview about regulations versus innovation. And, I don't think anyone wants to stifle innovation in America. It's a very interesting technology. It's very interesting ideas, right? No one wants that to go away and no one wants people to stop experimenting and stop dreaming bigger. At the same time, the other issue that we've seen now, especially, not only with the SCC, but with the IRS now getting involved, is the fact that even though this is something very very small, they are very concerned about where the technology could go in the future. The IRS is extremely concerned about erosion of the tax space. So, because of that, it makes a lot of sense for them to pay attention to this very very early on, nip this in the bud, and help guide it back into the right direction. >> I think that's a good balance. Great point. Innovation doesn't want to be stifled at all, absolutely. What's new and exciting for you? Share some personal or business updates in your world. What's going on? What's getting you excited these days, in the field? >> What's getting me excited these days? Well, I have to tell you that one thing that actually has gotten me excited these days is the fact that the Blockchain and cryptocurrency industries have grown up, substantially. And, now we're able to take a look at those industries in tandem with the tech industry at large, because they seem to sort of be going off in a different direction, and now we're taking a look at it, and now you can really see sort of where the areas that things are going to get exciting. I look at my clients and I see the things that they're doing and I'm always excited for them, and I'm always interested to see what new things that they'll innovate, because, again, I'm not a technologist. So, for me, that's a lot of fun. And, in addition to that, I think that other areas are extremely exciting as well. I'm a big fan of Acronis. I'm a big fan of cyber protection issues, data protection, data regulation. I think something that's really interesting in the world of data regulation, that actually has come out of the Blockchain community, in a way, is the notion of data as a personal right, as personal property. So, one of the big things is the idea that now that we've seen these massive data breaches with Facebook and 23andME, and the way that big government, big companies, are using individuals' datas, the idea that if data were to be personal property, it would be used very very differently. And technologists who are using Blockchain technology say that Blockchain technology might actually be able to make that happen. Because if you could have a decentralized Facebook, let's say, people could own their own data and then use that data as they want to and be compensated for it. So, that's really interesting, right-- Yeah, but, if you're just going to use the product, they might as well own their data, right? >> Katya: Exactly. >> Katya, thanks for coming on theCUBE. Thanks for the insight. Great, compelling narrative. Thanks for sharing. >> Sure, thank you very much. >> Appreciate it. I'm John Furrier here on theCUBE, Miami Beach, at the Fontainebleau hotel for Acronis' Global Cyber Summit 2019. We'll be back with more coverage after this short break.

>> Announcer: From Miami Beach, Florida it's theCUBE, covering Acronis Global Cyber Summit 2019. Brought to you by Acronis. >> Welcome back everyone to theCUBE coverage here at the Acronis Global Cyber Summit 2019 in Miami Beach at the Fontainebleau Hotel. Not a bad venue for an event. It's their first inaugural event around cyber protection. Our next guest is a great guest. He's going to go into great detail. Very fun job. Stressful job. Graeme Hackland, CIO of ROKiT Williams Racing Formula One team. Thanks for joining me. >> Thanks Joe. >> Great job you have. I mean, it's high pressure, high stakes, data's involved. You can nerd out on all the tech and it's a part of the business these days. Take a minute to explain the Williams Racing Team history and what are you guys up to these days. >> So Williams, this is Sir Frank Williams' 41st year with this team. 50 years in total he's been in Formula One. Won 16 world championships. Not recently, we want to do that again for him and that's the mission, right? Get up every day wanting to get back to the front of the grid and help Williams to win. I joined them in 2014. I've been 23 years in total in Formula One. I love the industry, the fast pace, everything you describe. There's a bit of stress obviously but I just love the industry and I joined Williams in 2014 to help with the digital transformation and it's been brilliant and now we're not using the transformation word anymore. We're on a digital journey. We've already put a lot of that infrastructure in place, moved to the cloud, and it's just been, it's been brilliant and we've had some success on the track. More recently it's been tough but we'll get back there. >> You know, I just had a conversation with Dan Havens who's the Chief Growth Officer, he's done all of the sports deals. We were talking about, you know, baseball and the other football, European football, and also Formula One. The competitive advantage edge is there in the data. AI is here, machine learning feeds AI, so now do you set up the infrastructure, you get operationalized properly. This is a big job. It's not just loading software. You got to really think about the wholistic system at work. >> That's the great thing, right? We've go to do the infrastructure right. So you've got to get the basics right. But then if we can do a better job with AI, with machine learning, with the analytic tools that are out there than the other teams are doing. We can beat them. We don't have the same funding levels that they do but we got really smart people, and people is our biggest asset. And then the second biggest is data and making sure that the right engineer has the right data at the right time so that they can do their job, so that we can set the fastest pit stop time or that we can challenge the cars in front of us. It is really important, so we put a lot of time and effort into data analytics, but especially video. Video has become huge for us and obviously then, the data size grows massively. But data and being able to analyze your competitors, analyze your own car, your two drivers against each other. There's a huge amount of data that we are dealing with. >> Without giving any secrets away Graeme, talk about some of the data dynamics that you have going on. What is some of the workflows? What are some of the things you're optimize... You said video. Where are you guys looking at? What are some of the key, cool things that you're seeing as an edge opportunity for you? >> So, Formula One team has this life cycle of a Formula One car where you start in aerodynamics, either in a wind tunnel with a physical model or you do virtual wind tunnel with computational fluid dynamics. There's CFD, so that computation power is really important. Then you go into design, CAD design, that really turns it into something that you can make so then we're into manufacturing. Then we got a race engineer, and all the tools that they use to get the optimum out of the car that they're given on a race weekend. And then you feed that back in so that every race were adding performance to the car, and all through the season. We'll add one and a half to two seconds per lap of performance onto that car every season. And so that's a really important loop that you need to be constantly doing. And if you don't, you know, we've had some issues in this year, if you don't get that completely right, you will lose time to your competitors. >> Give me an example where it didn't work out, where you've gone back to the drawing board. >> So, I think there's been, and it's been well publicized, Clay Williams has talked about it. There's been a bit of a gap between the results we were getting in the wind tunnel and the reality that was happening on the track. And so we've had to bring that back and make sure that there was a correlation between the tunnel and the track. And our engineering group will be working really hard on that, so that kind of thing can happen. >> Talk about the engineering backgrounds that are going on behind the scenes. A lot of people look at Formula One's, only the hardcore nerd that are nerding out and geeking out on the sport know that the depth but, what's going on in the engineering front because there's a lot of investment you guys are making on engineering. >> Yeah, and so, Formula One fans love the data. I think they really love to see the data and work with it and, fortunately, the people who run Formula One are opening more of that data to the fans. If you left it to the teams, we wouldn't share it with the fans because then our competitors see it and we see it as a competitor's advantage. But if something's shared for everyone then that's fair. So, I think the fans love to see the data and see what we're doing. What we're trying to look at now is automation. Humans making decisions has been okay up until probably the last couple of years where some errors have been made in strategy, in real-time where you've got a few seconds to make a decision. Are you going to pit? Virtual safety car has just been called. You've got three seconds to make a decision. Sometimes the humans are making the wrong decision. So we see automation, AI, as really having a role in that real-time decision making. But we think AI can help us in our factory. The things that we're making, something happens at the track, and now we have to change that design. We think introducing automation and AI into that process will really help us as well. >> Yeah, sports market, sports teams, and sports franchises, to me, optimize digital transformation or digital journey because the fans want it. >> Graeme: Yeah. >> There's competitive advantage in running the team. There's the player's decision making whether it's baseball or a driver. >> Graeme: Yup. >> And then there's the fans. So, I got to ask ya on, what are you guys thinking about the fan experience because now you got some data opening up, you got visualization, potentially apps that show you that cars in 3D space and some virtual reality potential. >> Yup. >> The old experience was, ooh, there's a car, goes by again, hey we're (giggles) comes by again. So, bringing, extending the digital fan-based experience, what do you guys, what's your view there? >> Oh, there's a huge amount of work happening in Formula One and it's great to see the people who are running Formula One talking about a digital transformation, not just the teams, right. And it was all about the fan experience. We want the fan to feel like they're a part of it. So Williams did a couple of experiments with virtual reality, so that you could either be one of the pit crews, so you could be the person holding the gun, feel the car coming in, and changing the tire. >> That's awesome. >> Or you could have the driver's view. So the cameras that are on the car are above the driver's head so you don't get an accurate view. So we brought that down into the helmet and now you're getting the view of what it's like to be the driver. >> Wow. >> So, there's been a lot of focus on that fan experience and making sure that you're not at a disadvantage sitting in this, you know, at the track, compared to someone who's at home with two televisions or multiple devices that they're tracking the data on. And the GPS data of where the cars are and hearing some of the commentary of why they're making the decisions they are and when the driver's challenge their engineers, I love that bit. So the engineers got all that data, tells the driver we're going to do this strategy and the driver challenges it because they're in the car feeling how the car feels. >> I think you guys have a great opportunity as an industry because, you look at Esports and the gaming culture, the confluence of that experience based product coming to Formula One. >> Graeme: Yup. >> It's just the perfect fit. >> Well, it's gone, the Esports Formula One has gone huge. We run a team as well. Most of the Formula One teams now have an Esports team. And actually, the people who are driving in the Esports teams, their skills are transferrable. I remember one of the competitions a couple of years ago was to win a drive in the simulator. You became a development driver for one of the Formula One teams. And that shows that those skills are transferrable, so it's great. >> Yeah, that's beautiful stuff. All right, I want to get back to the Acronis cyber.. >> Yup. >> Global Cyber Summit 2019. You're here talking to folks, also sharing knowledge, you guys were hit with ransomware. >> Graeme: Yup. >> Not once, but twice. >> Graeme: Yup. >> I think you had just joined, I think at that time before.. >> It was during 2014 when I first joined and we would, I know, we had put as much investment as we could into our cyber security and to our protection. But we had gaps and I think, so the first ransomware that we got hit by was inside our network and it encrypted 50,000 files before we discovered it. Now we were lucky. We were able to recover all the data from back-up, but we knew that, because it had happened in the middle of the day, someone had looked at some websites during their lunch break and within a couple of hours we had discovered it, contained it, corrected it, restored the data. But the second time we got hit, it was an individual on their computer off network, and we lost data. And that's the thing I hate the most. That data is so precious to us. Losing it was really upsetting. And so we went out into the market, how can we make sure that our data is being backed up? But more than that, how can we make sure that backed up data is protected? And there's a number of reasons we want to protect it. We want to protect it from things like ransomware, but also, the thing that people often don't thing about with their data is, how do we make sure that it's not tampered with at any point? So, when we're at the track, and the car's running around the track, we're pushing data locally, inside the network. We're pushing it to the cloud to do computation and we're sending it back to the UK so that engineers at base can work with it. >> Yeah. >> What it someone was in those stream of data tampering with it? >> Yeah. >> And we then had fake data? And as we go to more machine learning and automation, if those decisions are being made on bad data, that's going to be a real problem. So, we wanted to make sure that our data couldn't be tampered with, so we can adopt new technology. So that was really important. But, Williams also have an advanced engineering company, so beyond Formula One, we apply that knowledge and know how, to all sorts of other industries. From healthcare to retail to automotive. We've been helping Unilever with some really interesting projects to make ice cream better and more efficiently and to help with soap powder. We got to make sure that that customer data is never tampered with. If we're going to put technology into road cars, that's a very different challenge to Formula One. >> John: Yeah. >> We got to make sure that, that whole, the IP chain, how we develop that technology can be proven and isn't tampered with. >> It's interesting, supply chain concepts data protection merging together. Data protection used to be thought after.. Oh, we've got a design. Well let's brush up, we'll get back it, bolt it on. Not anymore. >> Now having to build it into the solutions up front. As we're preparing technology for customers, we're having to make sure that we're thinking about the data challenge. So if it's in a car, so we did battery technology, we won the supply for the first ever gas to electric model, right. As that car is driving around, there's going to be data that's important around the health of the battery. >> John: Yeah. >> And information that is going to be needed by the driver, but also for later for when they're doing the servicing on the car. We got to make sure that that data is protected properly. >> You guys are pushing the envelope on instrumentation, sensors, data, real-time telemetry? >> To be honest, Formula One has always been like that. We put our first data logger in 1979 on a Formula One car. Honestly, it's been an IOT device since then. (laughs) It's not a new thing for F Ones. I think we are really experienced. Our electronics group are real experienced in how to protect that data as it comes off the car and we've applied that knowledge to road cars as well. >> Well you, what's great about you guys and the whole industry is that, that innovation for the sport is now translating as a benefit for society. >> Exactly. >> And I think that is really kind of a, I think, an example of where innovation can come from. Places you least expect it. The people doing hard work pays off. >> It always worried me that Formula One, we spend all the money we spend, right, hundred million pounds, three hundred million pounds per year. And at the end of the year, the product that we created gets retired and we create a whole new product. It always worried me that that technology wasn't reused. Williams are reusing it. You know, we take the carbon fiber that we use to protect a driver in a Formula One car. We've now applied that to babies in hospitals when they get moved around. We built a carbon fiber unit that moves them around. Aerodynamics design, we've applied to fridges to make them more efficient. If you've got an open fridge, the cold air doesn't come out into the aisle of the supermarket. We push it back into the fridges. I love that. Reuse, taking loose end leaf batteries and putting them into a unit that you bought on the side of a house and it helps to power the house over night. >> You know, it's interesting Graeme, you mentioned digital transformation versus digital journey, you guys are operationalize it as it's used. >> Graeme: Exactly. >> Difference, there's nuance but transformation. You have yet transformed. >> Graeme: Yup. >> You guys up transformed so you're on a journey. I got to ask you, what is some learnings in your operationalize digital? I mean, obviously you got your sport, but now it's translating out to other areas. What's the big learnings that you take away from, as a professional and as an individual in the industry, from all this? >> I think, initially, we were quite conservative and we only went with big players that we were convinced were going to be around in three to five years. I think, there's a lot more established cloud providers now but early on we only went with the big guys because we wanted to make sure we could get our data out. If they disappeared, we weren't going to lose our data. I think what the partnership with Acronis and other partnerships we've done has helped us to be more aggressive in terms of our approach towards CAD vendors. We can now take risks with a smaller player. We've got a really niche product but it's something that could give us a competitive advantage for half a season, three, four races sometimes. We'd go for it. Whereas, I think we were a bit conservative at first. I think all CIOs have to think about what's their appetite for risk. We did a really good process of mapping that out, discussing it all the way to board level. What exactly are we prepared to risk? There's some things, you know, car data, we're just not prepared to risk that. >> Yeah. >> But there are some things that we can afford to take risks with. And I've talked to CIOs at finance institutes, they're starting to take risks now. There's core data that they won't be able to, either by regulation or just doesn't make sense. But there's a lot you can commoditize and put out into the cloud. >> And if you have a cyber protection foundation, you can take those risks. >> Graeme: Exactly. >> You don't want to be looking over your shoulder worrying. >> Because you own the data. And sometimes when you go with a cloud provider, it feels almost like they own the data. But when you've got a partnership like the one we have with Acronis, we know that we own the data. We're backing that data away from the cloud vendor so we can always get it back. >> Graeme, thanks so much for the insight. Love this conversation. I think it's really innovative, cutting edge, and great fun to talk about. Thanks for coming on theCUBE, appreciate it. >> Thank you very much, cheers. >> CUBE coverage here at Miami Beach at the Fontainebleau Hotel for Acronis Global Cyber Security 2019 Summit, I'm John Ferrier, stay with us for more CUBE day two coverage after this short break. (fun music)

>>From Miami beach, Florida. It's the queue covering a chronics global cyber summit 2019 brought to you by Acronis. >>Okay, welcome back. Everyone's the cubes covers two days here in Miami beach. The Fontainebleau hotel for the Kronos has global cyber summit 2019. It's inaugural event around a new category emerging called cyber protection. Um, this isn't a wave that's going to be part of the modernization a week we've been calling cloud 2.0 or whatever you want to call it. A complete modernization of the it technology stack and development environment includes core data center to the edge and beyond. Our next guest is Dan havens, chief growth officer per Chronis. Dan, thanks for coming on. Appreciate it. And thank you for having me, Dan. So, uh, what does chief growth officer mean? You guys obviously are growing, so obviously we see some growth there. Yeah, numbers are there. What she, what she, we have a couple of divisions in the company where we see we can really accelerate the business. >>So we came in and we wanted to make some large investments here. One of those areas was sports. You're seeing race cars out here on the floor, you're seeing all kinds of baseball teams, soccer teams, and we're talking to everybody. We have 40 teams now that are using our technology for competitive advantage on the field. Uh, the other areas, OEM, so, uh, original equipment manufacturers, everybody from making a camera to a server somewhere, having a Cronus be embedded, that's a big angle for us and we just didn't have a lot of focus. So I came into to build those divisions. I've actually joined the CEO before in a prior life in his last company and did something similar for him on a similar, uh, back there and we had violent success. So yeah, it's been a lot of fun. I've been here a year and a half and we're killing it. >>We got triple digit growth in the sporting category and similar in the OEM. It's interesting, you know, I look at a lot of these growth companies and the kind of a formula. You see, you guys have a very efficient and strong product platform engineering group. A lot of developers, a lot of smart people in the company, and a strong customer facing for the lack of a better word, field. The group you're in, you're involved, this is not, and you got marketing supporting it in the middle. Yep. So nice, efficient organizational structure on a massive way. But cyber, because this isn't your grandfather's data projection, this is a platform. What's the pitch? So the key here for us is we have to always say, and, and it, it's, it's hard to simplify and we're easy. In fact, we're cost-effective. Sometimes I'll even say I'm cheap and I'm easy. >>And that does not go out of style for an enterprise, right? So our ability to take good old fashioned backup and these things that other people need and basically extend that across. Now I can have one window where I can control, keep 'em out. If somebody gets in or from the inside or a disaster happens. I from this one place can recover my data. I'm secure with my data. I have the ability to notarize my data. So this one, and by the way, key simple interface. Customers love simple. This one simple interface to be able to do that. Now it takes a lot of engineering that goes behind that. I have plenty of, I have fancy engineering degrees and all that, but I try forget that when I'm talking to a customer because at the end of the day it's gotta make sense. A mind that doesn't know, says no. >>And I think we do a pretty good job of simplifying the message, but as they get under the covers and they roll it out, they recognize that there's, you know, we, we, we have more engineers per employee capita than any company that would have 1600 employees. Simple, easy to use. It reduces the steps it takes to do something as a winning business model. You kind of come from that school you mentioned, you know, cheap and easy. That's what is key. Yeah. But we're in a world where complexity is increasing and costs are increasing. Yep. These are two dynamics that are facing every enterprise, cyber it everywhere. What's your story when you want to educate that person so they can get to that? Yes. I want to work with you guys. What's that? What's that getting to? Yes. Processed motion look like. So the beautiful part is is we sell software right now. >>Software can be purchased complex. You install it, you can figure, you do everything yourself. We also can sell that from a cloud standpoint. So now you consume it like a service. Just like you consume Netflix at home, right? I can now consume this protection as a service. You have bolts spectrums covered. Most enterprises are somewhere in the middle. We call that hybrid. So the idea here is that there's going to be components where this data's not leaving these four walls. It might be government agency, it might be some compliance factor, but the ability to be able to say yes anywhere on that spectrum, it makes it very easy for an executive to say, okay, but we have a very, as you leverage the cloud, the OnRamp for this can be as simple as turning on the surface and pointing it at a data source. I mean, you're a student of history, obviously even in this business for awhile, you've done been there longer than you'd think. >>Data protection was kind of like that. Afterthought, backup data recovery all based upon, yeah, we might have an outage or a flood or hurricane Sandy who knows what's going to happen. You know, some force majority out there might happen, but security is a constant disrupter of business continuity. The data's being hijacked and ransomware to malware attacks. This is a major disruption point of a world that was supposed to be a non disruptive operational value proposition. Yeah, so the world has changed. They went from a niche, well, we've got their architecture of throwing back up. You've got to think about it from day one at the beginning. This seems to be your, your story for the company. You think about security from the beginning with data protection. There's only one club in the bag, so to speak. Talk about that dynamic and how's that translating into your customer's storytelling customer engagements to show you, you used an interesting word at the beginning, disaster recovery years ago, I started my tech industry in 1992 right? >>Disaster recovery is when we're going to have a flood or a hurricane and the building's going to burn down. What we find is most of our customers, that's certainly happens, but that's not the driver. The driver now is somebody after my data because the world has changed. Not only has the amount of data we're collecting change, but the ability to illegally monetize somebody else's data has become reality and you have social media that is socializes if you get breached and so forth. So there's a number of drivers. Number one, I don't want to be turned out of business. Number two, I don't want to be ransom. Then number three, I certainly don't want to do the cover of the wall street journal tomorrow morning as a top executive who looked past data. We literally watch brands, I won't mention the brand now, but a very large fortune 1000 what's called out yesterday. >>We see it every few days and we watched the carnage of their brand get deluded because they weren't protected. So I think it's the perfect storm up. I've got a ton of data, so it's coming in from all directions. Secondly, I I'm concerned about, you know, my brand and been able to protect that data and then you know, what do I do? And the disaster in this case is not necessarily flood or fire. It's that somebody from the inside or outside got in the gym. Pretend that I'm a decision maker. I'm like, my head's exploding. I'm got all this carnage going on. I don't want to get fired yet. I know I'm exposed. Nothing's yet happened yet. Maybe I settled the ransomware thing, but I know I'm not in a good place. What's your story to any, what's your pitch to me? What's in it for me? Tell me. >>Tell me the posture and the, well, we're halfway home. If you say, I know I'm not in a good place, right? Cause oftentimes somebody has to get bit first or they have to see their neighbor get bit first and then they say, Hey come in. One of my first plays would be let's find out what place you really are. I can do that very quickly and an assessment, we can gather your systems, we can get a sense for our, where's your data? Where it's flowing from. What are you doing? What are you doing to protect it? We typically will come back and there's going to be spots where there's blind spots. Sometimes they're fully naked, right? But the good news is is now we know the problem, so let's not waste any time, but you can get onboard and baby steps or you know, we can bandaid it or we can really go into full surgery however you want to move forward. >>But the idea is recognizing this has to be addressed because it's a beast. Every single device that's out there on the floor, in any enterprise, any company is a way in and a POC are critical for your business model. You want to get them certainly candy taste, show the value quickly has a POC, gets structured unit assessment. You come in on a narrow entry nail something quick, get a win. What's the, what's the playbook? Love PLCs because we're so fast and easy meaning oftentimes you do PLCs cause you're complex software and you're trying to prove your point and so forth. I love to push a POC cause I can do it inside of days, but I get the customer to take the drive. It's just on the car lot. If I get you to drive it down the block, you're not bringing it back. You're bringing it home to the neighbors. >>Right. That is the case with our software and our hit rate is key. But again it's because it's straightforward and it's easy. So though most sales cycles don't push for pilot. I can't wait to get a pilot but we don't need 30 days to do it in a couple of days. They're going to recognize I can do this too. You have a good track record of POC. If I get, this is going to be the most conceding. You might have to edit this out. If I get an audience, I will win. That is the most conceited statement on the planet. And if I get the audience and they will look, and this is why we use the sports teams. Sports teams are the cool kids using this. And if I get an executive to say, what are you guys doing with the red Sox? If I could get him or her to look, it's game over. >>Hey being bad ass and having some swagger. It's actually a good thing if you got the goods to back it up. That's not fun. Piece here is that the product works well and it's not this massive mountain to hurdle. It is. We can get started today and take bites as we go, but you mentioned sports. Let's get into that talk track. As we have been covering sports data for now six years on the cube in San Francisco. We were briefly talking about it last night at the reception, but I think sports teams encapsulates probably the most acute use case of digital transformation because they have multiple theaters that are exploding. They got to run their business, they got a team to manage and they got fan experience and their consumers, so you've got consumerization of it. You got security of your customers either in a physical venue from a potential terrorist disaster could happen to just using analytics to competitive venture from the Moneyball model to whatever sports really encapsulates what I call the poster child of using digital into a business model that works. >>You've been successful with sports. We interviewed Brian shield yesterday. Yup. Red Sox, vice-president technology. He was very candid. He's like, look it, we use analytics. It helps us get a competitive, not going to tell you the secrets, but we have other issues that people not thinking about drone strikes while the games going on, potential terrorist attacks, gathering the people, you know, adding on East sports stadium to Fenway park. They have a digital business model integrating in real time with a very successful consumer product and business in sports. This has been a good market for you guys. What's been the secret to success? >> Explosive market? Couple things. First off, you summarized well, sports teams are looking for competitive advantage, so anything that can come in under that guys is gonna get some attention plus data, fan data, system data, ticket data. Um, in baseball, they're studying every single pitch of pictures ever thrown. >>They have video on everything. This is heavy lift data, right? So a place to put it saved money, a place to protect it, a pace to access it so that all of my Scouts that are out in the field with a mobile device have the ability to upload or evaluate a player while they're out still on them and on the field somewhere maybe in another country. And then add the added caveat in our sexiest piece. And that's artificial intelligence. You mentioned Moneyball, right? Uh, the, the entire concept of, of stat of statistics came out in the Moneyball concept and you know, we all saw the movie and we all read the book, but at the end of the day, this is the next step to that, which is not just written down statistics. Now we can analyze data with machine learning and we have very, we have unique baseball examples where there's absolutely no doubt they have the data. >>It's the ability to, how do I turn that to where I can be more competitive on our racing team. So we're actually working with teams improving, changing the car on the track during the race, using our software fact. We always look forward to opportunities where somebody says, Hey, come in and talk about that because it's incredibly sexy to see. Um, but sports are fun because first off they're the cool kids. Secondly, they're early adopters. If it's gonna give competitive advantage, uh, and third, they hit all the vectors. Tons of data have to protect it. >> It's our life in the business models digital too. So the digital transformation is in prime time. We cannot ignore the fact that people want wifi. They got Instagram, Facebook, all of these, they're all conscious of social media. There are all kinds of listening sports club, they have to be, they have to be hip, right? >>And being out front like that, think about the data they have come in at. And so not just to be smart on the field, they have to be smart with our customer. They're competing with that customer for four of their major sports or whatever. Major sports in the, in the, in the, in our case in this fashionable to be hip is cool for the product, but now you think about how they run their business. They've got suppliers, um, that have data and trusting suppliers with data's. There's a difficult protection formula. They've got national secure security issues. They have to protect, well they have to protect as a big part, but they have to protect, well first off these, these archives of data that are of 20 races ago or of this pitcher pitched three years ago and I have a thousand of his pitches and I'm looking for towels. >>That is, that's mission critical. But also, uh, to boot you have just business functions where I'm a, I'm a team and I have a huge telco sponsor and we are shifting back and forth and designing what their actual collateral is going to be in the stadium. They're actually using a Chronis to be able to do that up in the cloud where they can both collaborate on that. Not only doing it, but being able to protect it that way. It's, it's more efficient for them. It's interesting. I asked Brian shield this question, I asked her how does baseball flex and digital with the business model of digital with the success of the physical product or their actual product baseball. And he said an interesting thing. He's like the ROI models just get whacked out because what's the ROI of an investment in technology? It used to be total cost of ownership. >>The class that's right under the under the iceberg to sharpen whatever you use, you use that. We don't use that. We think about other consequences like a terrorist attack. That's right. So so the business model, ROI calculation shifting, do you have those kinds of conversations with some of these big teams and these sports teams? Because you know they win the world series, their brand franchise goes up if they win the national championship, but whatever their goal is has real franchise value. There's numbers on that. There's also the risk of say an attack or some sort of breach. >> Well, I won't mention the names, I won't mention the teams by name, but I have a half a dozen teams right now and two that are actually rolling out that are doing facial recognition just for security, a fan's entering their stadium. So they are taking the ownership of the safety of their fan to the level of doing visual or facial recognition coming into their stadium. >>Obviously the archive to measure against is important and we can archive that, but they're also using artificial intelligence for that. So you're absolutely right. They owe their fan a safe experience, not only a safe experience with good experience and so forth. And we love to be associated whenever we can with wins and losses. But to your point, how do you get, or how do you show a TCO on a disaster and nobody wants to, and by the way, we've seen enough of that to know it's looming. And there's also the supply chain too. I can buy a hotdog and a beer from Aramark, which is the red socks. They say supplier that's not owned by the red Sox. They have a relationship. But my data's in, I'm a consumer of the red Sox. I'm procuring a, you know, some food or service from a vendor. Yeah, yeah. My data's out there. >>So who protects that? Well, these are unique questions that come up all the time. Again, that's a business decision for the customer. The idea is with cloud collaboration, it's technically quite easy, but again, they have to decide where they're gonna commingle their data, how they're going to share. But the idea here is, again, back to the spectrum, fully cloud and accessible and locked down airtight government's scenario where we have a, you know, a lock bottom line is you get to pick where you want to be on there and there's going to be times where my example of talking to the, uh, the telco vendor, we're, we're actually going to share our data together and we're going to make us faster, make a quicker return and design this collateral for our stadium faster. Those are business decisions, but they're allowed because it, Coronas can be as hybrid as you need to be along the site. >>And again, that resonates with an executive. They never want to be wearing handcuffs and they don't want to pay overpay for stuff to not use our stuff. And if you decide to consume cloud, you, you just pay as you go. It's like your electricity bill. All right. So the red Sox are a customer of you guys. You have or they use your service. What other sports teams have you guys engaged with who you're talking to? Give a taste of some of the samples. So European, we have a couple of formula one teams. We have a racing point. We have the Williams team and formula E we have to cheetah the dragon team. We have a adventury, we also have Neo. So we have a good presence in the racing clubs. We have a ton of a world rally cars and, and, and motorcycle motorcross and so forth. >>Then you step over into European football. So we, we, we started in cars and recognize this is hot. So then we got our first, uh, European team, uh, and we had arsenal. As a matter of fact, we have one of the legends here signing with us today. And you know, I mean, they're rock stars, right? People follow them. Anyway, so we have arsenal and we did man city. Um, and we just landed, uh, Liverpool just did that this quarter, two weeks ago. I literally just, the ink is still drying. Um, and then you move into the United States, which I brought the, you know, I brought the circus to town on January one, 2019. First when was the Boston red Sox. We quickly followed that up. You'll see us on the home run fence at San Diego Padres. Volts bought for different reasons, but both very sexy reasons. So it's the reason. >>What were the main drivers? So in the case of the Boston red Sox, it was, it was a heavy lift on video. A lot of on the protection side. Um, the, uh, San Diego was file sync and share. So the example I was giving of, um, being able to share with your largest telco vendor or with your largest investors slash sponsor for your stadium, um, that was the driver. Now what's funny about both is as they get started, he's always expanding, right? So we have the baseball teams, we did land this quarter, the Dallas stars. So that's our first hockey club. I really want. And my goal is to try to get a couple in each of the main four categories and then some of the subs, um, just cause you get the cool kids, you get a tipping point. Everybody then wants to know what's going on. I have a hundred and play. >>And so we, we typically try to qualify regional where it makes sense. Um, uh, we're, you know, we're very close with a team here in the region. So, you know, they, in the feedback from, from the, from the successes you had implementations, why, what's uh, what's been the feedback from the customers. So here's the file in this. Sounds like I'm just tripping with sales guy and I apologize. Warning signs. Okay. If they use it, we're home free. So when you get Brian or any one of these guys that are using it, all I have to do is make sure that a new customer hears this person who has no reason to say anything else and just expose them to it. Because it's this unknown, scary thing that we're trying to protect against and being able to do that and have the freedom of how aggressive or you know, what metaphor am I going to cover that? >>And then also, uh, you know, the, obviously the economics work is you pay as you go. Um, it's, you know, it's a good story. Well, Dan, congratulations on the success. Um, great to see you guys really digging in and getting those PLCs and being successful. We watching your growth. Final question for you yes. Is all the data and the patterns that you see and all of customers. What's the number one reason why a Cronus is selected and why you women? I think that's an interesting question and I think that it's a couple of reasons. Number one, we work, we're easy. We have an enormous footprint. So there's a lot to reference from. Many people have already used us on the consumer side, so we're safe. So that's one reason I would also tell you however, that we have a great ecosystem because a Kronos is different than most software companies. >>Most software companies have a huge outside sales force that sells direct to customer a Chronis. Everybody here is a partner. We sell through a service provider to a channel member through a, through a, a, a, an ISV. Um, and then we have some direct enterprise. But the idea is there's a variety of solutions that can be baked on this foundation. And I think people like that variety. I, they, they like the, like the freedom of I'm not just trapped with this one thing. I can buy it and all options are available and I will tell you an it, nobody wants to be locked down. Everybody wants options, safety in numbers. They want their data protected with the whole cyber land lens. And they know everything's changing every six months. Something's different. And I don't want to be handcuffed in my desk. I want all options available. I think that's our best value from all right, Dan, thanks for coming on. Dan havens, chief growth officer, but Krohn is weird. The Chronis global cyber summit. I'm John Ford. Stay tuned for more cube coverage after this short break.

>> Announcer: From Miami Beach, Florida, it's theCUBE, covering Acronis Global Cyber Summit 2019. Brought to you by Acronis. >> Hey, welcome back everyone. It's theCUBE's coverage here in Miami Beach, Florida at the Fontainebleau Hotel for Acronis' Global Cyber Summit 2019's inaugural event with cyber protection, the new category that's emerging. It's been really exciting, it's a platform to really protect the data, protect cyber. Data protection's evolving to cyber protection. This is part of the Cloud 2.0 coverage that we've been covering on SiliconANGLE and theCUBE. Over the past year we're seeing more and more modernization of IT and systems. We're here with Ryan Davis, director of enterprise sales for Acronis. He's out on the front lines. This company has a great platform and a great field team out pushing the envelope, educating customers, having great success. I thought it would be great to have you on. Ryan, welcome to theCUBE. >> Ryan: Thank you for having me. >> So one of the things that I've observed and noticed with you guys is that you have a very strong field customer presence, you guys do a great job across the board on a direct touch basis, but also a huge channel operation, so you guys sell a lot through the channel, which is all good stuff, but you still got to talk to the big companies, still got to go to the large enterprises where you're having success. So you're doing that. What are some of the things that you're seeing when you're out pitching clients on Acronis, what are some of the concerns that you're hearing, what are the patterns, what's going on in the general broader market that's teasing out the Acronis value proposition? >> Sure, absolutely. So really where a lot of the focus and a lot of the attention is is on the edge. Five years ago, all the data was generated, produced, and analyzed in the core, in the data centers, whereas now, with the IoT devices, the proliferation of smart devices generating the data, they can't send it all to one central location. So networks are springing up out there in a distributed manner, and they have to be able to secure those smart devices and those edge networks. And that's where Acronis has a really compelling story, especially for enterprise. Because while they have a lot of consistency in the core, there's a lot of diversity on the edge. So it creates challenges for their IT teams to be able to manage it. So we can work with their field teams to provide a platform that can actually secure the devices in place and then protect them as well. >> So what's the pitch? Give us the pitch on that problem that you've just addressed, because that is legit. The edge is springing up, you're seen more and more edge cases and there's the outer edges, wearables, right? But the industrial edge, the company's edge, where you guys have a solution, that's challenging. The surface area for attacks are high, you have data as a challenge, you move compute to the data, you move data across the network, these are all costs, so costs are going up too. So with that problem, what is the pitch? >> Sure, well it really depends on who you're talking to, but there's two levels to it, right? So when you're talking industrial networks, the cost of downtime is huge, you know? You have 1,200 employees, at an automotive plant and you have a key industrial controller goes down, and that plant stops production, the cost is enormous. So at the plant level, they feel that pain, so they recognize the need for disaster recovery and business continuity capabilities. But when you start moving up a level at the executive level, it's what's really compelling and what's sexy for them. And that's really enabling digital transformation. And so I mentioned the concept of diversity a little bit earlier today. It's really hard for IT teams to do things on the edge when they may have 20,000, 40,000 edge devices that are going to run from NT, XP up to the most modern operating systems. It's difficult to implement a solution that's going to touch all of those devices. And backup and disaster recovery is critical for that, because if you're going to touch that many devices, you need the rollback capability. So being able to communicate a path forward to digital transformation on the edge is what is really exciting a lot of our executive customers. >> All right, so pretend I'm a customer for a minute, I'm like, hey Ryan, so hey, love the pitch, but I had XYZ data recovery company just came in earlier, they said they got an amazing platform. Why are you different, why should I not go with them? Why should I go with you? >> Sure, absolutely. Well all the competing vendors, all they know is the data center, right? So Acronis, part of our unique value proposition is not just the technology, it's really people, processes, and technology. So our experience working with industrial companies, pharmaceutical companies, working in compliant GXP, NERC CIP, this allowed us to develop expertise to come in not just with our product and the tech, but with people that know their environments and processes for successful implementation that other vendors can't bring. And our relationship with key automation vendors, we have our partners Honeywell, Emerson that embed our product, these are leading automation vendors that touch thousands of enterprises, and again, those experiences give us an understanding of these environments that other companies don't have. >> All right, so now I can come back and say, okay, well Ryan, you know, I like what you're saying, but I don't want to boil the ocean over. I don't see a path from what you're saying to execution. How can you help me figure this out? What do you offer me, as a client, if I'm the client, how do I get started? Is there a methodology, land, adopt, expand, how do you guys do that? >> Absolutely. Well, again, every customer's going to be different, right? But we don't like to boil the ocean either. What we're talking about is a path to digital transformation. We're not talking about the end result, right? So the first piece, the land, is always backup, right? When you backup the system, that provides a rollback mechanism so that provides an opportunity for you to do a lot more things with the computer. But the first piece is always just an assessment. You have to do an assessment, take stock of what you have, and Acronis is building technologies around discovery to help customers wrap their arms around these environments to make decisions on what they should do. >> So what's in it for me when I hear a platform, I hear about maybe complexity, is the platform really going to be the silver bullet? How do you manage that concern? >> Sure, sure. Well, most enterprises have at least five to seven different data protection solutions out there. So when you start talking about platform, you start talking kind of jargon words like unifying, consolidating their data protection suite. And that's really what Acronis is trying to do but not just in backup, but also offering more services through a single platform, so reducing the overall stack of tools that they're using to manage these environments. And again, going back to the edge, they don't have their big IT team that is versed in managing complex applications, right? You have controls engineers, plant engineers, scientists, that are interacting with these devices just enough to be dangerous. Think of it like a mechanic, so he's been working on cars his whole life, is very familiar with carburetors and brakes but now he gets a Tesla that's got sensors all over the place, and infotainment systems that run diagnostics, that doesn't make him an expert in that computer. So what Acronis is trying to do is provide you an easy-to-use platform that can solve multiple problems so that way a non-IT expert can service their compute infrastructure on the edge. >> So you guys have a good story for the edge. Also one story that's coming up here is ransomware. >> Correct. >> Ransomware is one of those disruptions that wasn't factored into the design of, you know, old-school legacy data protection and recovery systems. Those disruptions were hurricane, floods, some sort of mechanical failure, not a logical vector, in this case, security, which is going up high frequency. More and more every day, ransomware, malware, ZeroDay, others, incidents are on the rise. So more disruption. >> Correct. >> You guys are coming from that angle. >> Well, we're building security first into the platform. And that's a pivot that we made over the last 12 to 24 months. The first piece of that has already been released, which is called Active Protection, which is a module that actually monitors for changes and can prevent unauthorized changes to the file system like encryption. And so we're the only backup application that creates that proactive layer of protection. Everybody else is only going to be able to recover and be reactive. So we're trying to create a layered approach there and improve our customer security posture through an agent that's-- They would need to do the backup anyways. >> All right, so final track I want to chat with you about is take us through the real-life use case of an ideal sales process motion that encapsulates this modern era challenges and opportunities. You don't have to name the customer's name, you can use an anonymized case, but take use through what is a typical motion for you guys where you're successful, and what does it look like? >> Sure, absolutely. So it's pretty consistent, and I would say a pretty simple sales motion. The first piece is you have to do an assessment and a basic inventory in terms of what platforms are you going to have out there, and then, you're going to assess the sites that you have 'cause you need to create a deployment plan. And edge environments, it's not like the data center where you're just going to login to SCCM and push this out to your thousands of devices. They got to go to 40, 60 different plants. So you have to build, typically, a 12-month deployment plan where you're going to hit all of these different sites, build change windows, build maintenance windows. But before you can get to that, we do a POC on-site, where you touch, make sure that you have compatibility with the automation vendors, make sure you have compatibility with these networks, which are, again, very diverse and customized at each plant. Once you have a validated deployment process, you build out a timeline where you go site to site to site to deploy it. >> Take us through a POC. What does that look like, what's a typical POC for you guys? >> Sure, it's very simple based on what the ultimate objectives are. Most of our customers on the edge are primarily interested in business continuity, which would be backup, system recovery, application restore, right? On the edge it's not as much about the data, it's about securing the application that's performing the work, and so we protect the system, allow them to roll it back, once you validate that on the different platforms that they have, they're ready to move forward. >> And workloads are key criteria in all of this, that's a key factor. >> Absolutely, distributed control systems, R and D systems, lab systems, they have a lot of different types of applications you're not going to see in the data center, and we just want to get validated. >> John: So you hit your number? >> Absolutely, every year! (laughs) >> Over quota? >> Every year! >> All right. Ryan, thanks for coming on and sharing stories from the field, really appreciate it. >> Appreciate it, have a great one. >> CUBE Coverage here in Miami Beach, not a bad venue for a conference. This is the first conference that Acronis is putting on around cyber protection, Acronis' Global Cyber Summit 2019. Cyber protection new category emerging from the data protection world, this is the big story here. TheCUBE's covering two days, we'll be back with more after this short break. (electronic music)

>>From Miami beach, Florida. It's the queue covering a Chronis global cyber summit 2019. Brought to you by Acronis. >>Okay. Welcome back. Everyone's cubes coverage here and the Kronos is global cyber summit 2019 and Sarah inaugural event around cyber protection. I'm John Forrey hosted the cube. We're talking to all the thought leaders, experts talking about the platforms. We've got a great guest here, security analyst, author and Ted speaker. Karen Ellis, Zari who runs the besides Tel Aviv. Um, she gave a keynote here. Welcome to the queue. Thanks for coming on. >>Oh, thanks for having me. It's a pleasure. >>Love to have you on. Security obviously is hot. You've been on that wave. Even talking a lot about it. You had talked here and opposed the conference. But for us, before we get into that, I want to get in and explore what you've been doing that besides Tel Aviv, this is the global community that would be runs a cyber week. He wrote a big thing there. >>So that's something that's really important to me. So 10 years ago, hackers and security researchers thing start that somebody called security besides which was an alternative community event for hackers that couldn't find their voice in their space. In the more mainstream events like RSA conference or black hat for example. That's when security besides was born 10 years ago. Now it's a global movement and there's been more than a hundred besides events. Just this year alone, just in 2019 anywhere from Sao Paolo to Cairo, Mexico city, Athens, Colorado, Zurich, London, and in my hometown of Tel Aviv. I was very proud to bring the besides idea and the concept to Tel Aviv five years ago. This year, 2020 will be our fifth year and we'll be, I hope our biggest year yet last summer we had more than 1200 participants. We take place during something called Telaviv cyber week, which if you've never visited Tel Aviv, that's your opportunity next year of Bellevue cyber Wade brings 9,000 people to Israel. >>It's hosted by Tel Aviv university where I'm also a researcher and all of these events are free. They're in English, they are welcoming to people from all sorts of places in all walks of life. We bring people from more than 70 countries and I think it's great that we can have that platform in Israel, in Tel Aviv to share not just our knowledge but also our points of view, our different opinions about the future of cyber security. Tel Aviv university. Yeah. So Tel Aviv university hosts me cyber week and they're also the gracious hosts for the sites televi which runs as a nonprofit separate from the university. >>You know, I love these movements where you have organic, just organic growth. And then we saw that with the unconference wave couple years ago where you know, the fancy conferences got too stuffy to sponsor oriented, right? That's >>right. Yeah. Up there too. They want to have more face to face, more community oriented conversations, more or, yeah. So besides actually the first one was absolutely an unconference and to this day we maintain some of that vibe, that important community aspect of providing a stage for people that really may not have the opportunity to speak at Blackhat or here or there. They may not feel comfortable on a huge with all those lights on them. So we really need to have that community aspect of them and believe it or not. And unconference is how I got on the Ted stage because a producer from Ted actually came all the way to Israel to an unconference in the Northern city of Nazareth in Israel, and she was sitting in the room while I was giving a talk to 15 people in the lobby of a hotel. And it wasn't that, it wasn't, you know, I didn't have a big projector. >>It wasn't a fancy production on any scale, but that's where that took for loser found me and my perspective and decided that this was this sort of point of view deserves to have a bigger stage. Now with digital technologies, the lobby conference, we call it the lobby copy, cons, actions in the hallway, just always kind of cause do you have a programs? It's not about learning anymore at these events because if all you can learn online, it's a face to face communal activity. I think it's a difference between people talking at you. Two people talking with you and that's why I'm very happy to give talks and I'm here focused on sharing my point of view. But I also want to focus on having conversations with people and that's what I've been doing this morning, sharing my points of view, teaching people about how I think the security worlds could look like, learning from them, listening to them. >>And it's really about creating that sort of an atmosphere and there's a lot of tension right now in the security space. I want to get your thoughts on this because you know, I have my personal passion is I really believe that communities is where the action is in a lot of problems can be solved if tapped properly, if they want, if they're not used or if they're, if the collective intelligence of a community can be harnessed. Yes, absolutely. Purity community right now has a imperative mandate, which is there's a lot of to do better. I think good that could be happening. The adversaries are at scale. You seeing, um, you know, zero day out there yet digital warfare going on, you got all kinds of things on a national global scale happening and people are worried. Absolutely. So there's directions, there's a lot of fear, there's a lot of panic going on these days. >>If you're an average individual, you hear about cybersecurity, you're of all hackers, you're thinking, Oh my God, they should turn all of my devices off, go live in the woods with some sheep and that's going to be my future. Otherwise I'm a twist and I agree with you. It's the responsibility, all the security industry and the security community to come together and also harness the power and the potential of the many friendly hackers out there. Friendly hackers such as myself, security researchers and not all security researchers are working in a lab at the university or in the big company and they might want to, you know, be wherever they are in the world, but still contributing. This is why I talk about the hackers immune system, how hackers can actually contribute to an immune system helping us identify vulnerabilities and fix them. And in many cases I found that it's not just a friendly hackers, even the unfriendly ones, even the criminals have a lot to teach us and we can actually not afford not to pay attention, not to be really more immersed, more closely connected with what is happening in the hacker's world, whether it's criminal hackers underground or the friendly hackers who get together at community events, who share their work, who participate on bug bounty platforms, which is a big part of my personal work and my passion bug bounty programs for the viewers who are not familiar with it are frameworks that will help companies that you might rely on like Google or Facebook, United airlines or Starbucks or any company that you can imagine. >>So many big companies now have bug bounty programs in place, allowing them to actively reward individual hackers that are identifying vulnerabilities. Yeah. And they pay him a lot of money to up to millions of dollars. Yes, they do, but it's not just about the money, you know, don't, it's not just amount of money. There's all kinds of other rewards that place as well. Whether it's a fancy, you know, a tee shirt or a sticker, or in the case of Tesla for example, they give out challenge coins, the challenge coins that only go out to the top hackers. I've worked with them now you can't find anything with these challenge coins. You keep the tray, you can trade them in in the store for money. But what you can do is that you get a lot of reputational and you know, unmonitored value out of that as well. Additionally, you know another organization that's called them, the Pentagon has a similar program, so depending on his giving out, not just monetary rewards but challenge coins for hackers that are working with them. >>This reputation kind of system is really cutting edge and I think that's a great point. I personally believe that that will be a big movement in all community behavior because when you start getting into having people arbitrator who's reputable, that's an incentive beyond money. Well, what I've found great I guess, but like reputation also is important. I can tell you this because I've, I've this, I've really dissected and researched this in my academic work and the look at the data from several bug bounty programs and the data that was available. There's all kinds of value on the table. Some of the value is money and you get paid. And you know, last month I heard about the first bug bounty millionaire and he's a guy from Argentina. But the value is not just in the money, it's also reputational value. It's also work value. So some hackers, some security researchers just want to build up their resume and then they get job offers and they start working for companies that may have never looked at them before because they're not graduates of this and that school didn't have this or that upbringing. >>We have to remember that from, from the global perspective, not everybody has access to, you know, the American school system or the Israeli school system. They can't just sign up for a college degree in cybersecurity or engineering if they live in parts of the world where that's not accessible to them. But through being a researcher on the bug bounty platform, they gain up their experience, they gain up their knowhow, and then companies want to work with them and want to hire them. So that's contributing to the, you've seen this really? Yeah. We've seen this and the reports are showing this. The data is showing this, all of the bug bounty programs that ha have reports that come out that show this information as well. Do you see that the hackers on bug bounty pack platforms that usually under 30 a lot of them are. They're 30 they're young people. >>They're making their way into this industry. Now, let me tell you something. When I was growing up in Israel, that was a young hacker. I didn't know any bug bounty programs. None of that stuff was around. Granted, we also didn't have a cyber crime law, so anything I did wasn't officially illegal because we didn't have, yeah, it wouldn't necessarily. Fermentation is good. It certainly was and I was very driven by curiosity, but the point I'm trying to make is that I didn't actually have a legal, legitimate alternative to, you know, the type of hacking that I was doing. There wasn't any other option for me until it was time for me to serve in the Israeli military, which is where I really got my chops. But for people living in parts of the world where they don't have any legitimate legal way to work in cybersecurity, previously, they would have turned to criminal activities to using their knowhow to make money as a cybercriminal. >>Now that alternative of being part of a global immune system is available to them on a legitimate legal pathway, and that's really important for our workforce as well. A lot of people will tell you that cybersecurity workforce needs all the help it can get. There's a shortage of talent gap. A lot of people talk about the talent gap. I believe a big part of the solution is going to come from all of these hackers all over the world that are now accessing the legitimate legal world of cybersecurity or something. I want to amplify that. Certainly after this interview, I'd love to follow up with you. Really, we will come to Tel Aviv. It's on our list for the cube stuff. We'll be there. We'd love to launch loving mutation. What you're talking about is an unforeseen democratization, the positive impact of the world. I want you to just take a minute to explain how this all came together for this. >>With your view on this reputational thing. I talk about the impact. Where does it go beyond just reputational for jobs? What? How does a community flex and organically grow from this and so one thing that I'm very happy to see, I think in the past couple of years, the reputations generally of hackers have become important and that the concept of a hacker is not what we used to think about in the past where we would automatically go to somebody who was a criminal or a bad guy. Did you know that the girl Scouts organization, the U S girl Scouts are now teaching girls Scouts to be hackers. They're teaching them cybersecurity skills. Arguably, I would claim this is a more important skill than making cookies or you know, selling cookies. Certainly a more money to survive in the wilderness. Why not in the digital wilderness? Yes, in a fire counter than that. >>More than that, it's about service. So the girl Scouts organization's always been very dedicated to values of service. Imagine these girls, they're now becoming very knowledgeable about cybersecurity. They can teach their peers, their families, so they can actually help spread. The more you build a more secure world, certainly they could probably start the fire or track a rapid in the forest or whatever it is that girl Scouts used to do that digitally too. That's called tracing. Really motivating that person. I think that's aspiring to many young women. That's very kind of, you actually have to have more voices out there. What can we do differently? What help? What can I do as a guy, as in the industry, I have two daughters. Everyone has, as I get older, I have daughters because they care now, but most men want to help. What can we do as a group? >>So I think you're absolutely right that diversity and inclusivity within the technology workforce is not a problem there. Just the underrepresented groups need to solve by. It's actually an issue for the entire group to solve. It's men or women or any underrepresented minority and overrepresented groups as well because diversity of the workforce will actually help build a more resilient, sustainable workforce and will help with that talent gap, that shortage of people of skilled employees that we mentioned. Others, a few things that you can do. I personally decided to do what I can, so I contributed to a book called women in tech at practical guide and in that book there's also a chapter for allies. So if you're a person that wants to help a woman or women in tech in your community, you are very welcome to check out the book. It's on Amazon, women in tech, a practical guide. >>I'm a contributor to that and myself. I also started a group called leading cyber ladies, which is a global meetup for women in cyber security and we have chapters on events in Israel, in New York city, in Canada, and soon I believe in United Kingdom and Silicon Valley and perhaps in your company or in your community, you could help start a similar group or maybe encourage some of the ladies that you know to start a group, help them by finding a space, creating a safe environment for them to create meetups like that by providing resources, by sponsoring events, by mentoring does a few, a lot of things. Yeah, there's a lot of things that you can do and it's certainly most important to consider that diversity in the workforce is everybody's issue with Cod. Something just one gender or one group needs to figure out how to be a big bang theory. >>You can share with three people, two people, absolutely organic growth or conditional. Yes, certainly. And as men, if you don't want to, you know, start them an event for women because that may seem disingenuous, but you can do certainly encourage the women that you find around you. In your workforce to see if they want to maybe have a meetup and if they do, what kind of help you can offer? Can you run the AB for them? Can you as sponsored lacrosse songs, whatever kind of help that you can offer to create that sort of a space. The reason we we started cyber ladies is because I didn't see enough women speaking at security events, so I wanted to fray the meet up where the women in cybersecurity could share their work network with one another and really build up also their speaking port portfolio, their speaking powers so that they can really feel more comfortable speaking and sharing their work on other events as well. >>Camaraderie there too. Yes, it very important. Thank you so much to you now, what is your, your professional and personal interests these days? What's getting you excited? So there's some of the cool things. That's a fantastic question. So one thing I'm super excited about is that I'm actually collaborating with my sister. So my sister, believe it or not is a lawyer and she's a lawyer who specializing in cyber line, intellectual property privacy, security policy work, and I'm collaborating with her to create a new book which would be a guide to the future of cybersecurity from the hacker's perspective and the lawyers perspective because we are seeing a lot of regulators, a lot of companies that are now really having to follow laws and guidelines and regulations around cybersecurity and we really want to bring these two points of view together. We've already collaborated in the past and in fact my sister has worked on the legal terms of many of the bug bounty programs that I mentioned earlier, including the Tesla program. >>So it's very exciting. I'm very proud to be able to work with my younger sister who followed me into the cyber world. I'm the hacker, she's the lawyer and we are creating something together. Dynamic duo that's going to be, I'm excited to interview her. Yeah, so in my family we call her the tour Vogue version. Can you imagine that together? It's really unstoppable. We didn't have a chance to speak together at the RSA conference earlier this year and that was really unique. Am I going to fall off on that with the book? Well, our platform is your platform. Anything we can do to help you get the word out, super exciting work that you're doing. We think cyber community will be one of the big answers to some of the challenges out there. And we need more education. Law makers and global politicians have to get more tech savvy. Yes, this is a big, everybody, it's everybody's issue. Like I said in this morning speech, everybody's on the front lines. It's not the cyber generals or you know, the hackers in the basements that are fighting. We are on that digital Battlefront and we all have to be safer together. Karen, thanks for your great insights here in energy. Bug bounties are hot. The community is growing. This is the cyber conference here that, uh, Acronis global cyber summit 2019. I'm John Barry here to be back with more coverage after this short break.

>> Announcer: From Miami Beach, Florida, it's The Cube, covering Acronis Global Cyber Summit 2019. Brought to you by Acronis. >> Welcome back everyone. We are here with The Cube coverage for two days. We're wrapping up, getting down on day one in the books for the Acronis Global Cyber Summit 2019. I'm John Furrier, your host of The Cube. We are in Miami Beach, the Fontainebleau Hotel. I'm personally excited for this next guest because I'm a huge Red Sox fan, even though I got moved out to California. Giants is in a different area. National League is different than American League, still my heart with the Red Sox. And we're here with an industry veteran, seasoned professional in IT and data, Brian Shield. Boston Red Sox Vice President of Technology and IT. Welcome to The Cube, thanks for joining us. >> Thank you. It's great to be here. >> John: So congratulations on the rings. Since I moved out of town, Red sox win their World Series, break the curse of the Bambino. >> Hey we appreciate that. Thank you. >> My family doesn't want me back. You got to show >> Yeah, maybe I'll put this one up for the, maybe someone can zoom in on this. Which camera is the good one? This one here? So, there ya go. So, World Series champs for at least for another week. (laughter) >> Bummer about this year. Pitching just couldn't get it done. But, good team. >> Happens. >> Again, things move on, but you know. New regime, new GM going to come on board. >> Yup. >> So, but in general, Red Sox, storied franchise. Love it there. Fenway Park, the cathedral of baseball parks. >> Brian: Defnitely. >> And you're seeing that just play out now, standard. So just a great place to go. We have tickets there. So, I got to ask you. Technology, sports, really is modernized faster than I think any category. And certainly cyber security forced to modernize because of the threats. But sports, you got a business to run, not just IT and making the planes run on time. >> Sure. >> Scouts, money, whatever. >> Fans. >> You got fan experience. >> Stadium opportunities. >> Club management, scouts are out there. So you got business, team, fans. And data's a big part of it. That's part of your career. Tell us what the cutting edge innovation is at the Red Sox these days. >> I think baseball in general, as you indicated, it's a very evolving kind of environment. I mean historically I think people really sort of relish the nostalgia of sports and Fenway Park being as historic as it is, was probably the pinnacle of that, in some respects. But Red Sox have always been leaders and baseball analytics, you know. And everyone's pretty familiar with "Moneyball" and Brad Pitt. >> John: Is that a true story, he turned down the GM job? >> I'm told it is. (laughter) I don't know if I fully vetted that question. But over the last six, seven years, you know we've really turned our attention to sort of leveraging sort of technology across the businesses, right? Not just baseball and analytics and how we do scouting, which continues to evolve at a very rapid pace. But also as you pointed out, running a better business, understanding our fans, understanding fan behavior, understanding stadiums. There's a lot of challenges around running an effective stadium. First and foremost to all of us is really ensuring it's a great fan experience. Whether it's artificial intelligence, or IoT technologies or 5G or the latest Wifi, all those things are coming up at Fenway Park. You and I talked earlier about we're about to break ground for a new theater, so a live theater on the outside, beyond the bleachers type of thing. So that'll be a 5,400-seat arena, 200 live performances a year, and with e-sports, you know, complementing it. It just gives you an example of just how fast baseball is sort of transitioning. >> And the theater, is that going to be blown out from where that parking garage is, structure and going towards >> So the corner of Landsdown and Ipswich, if you think of that sort of corner back there, for those that are familiar with the Fenway area. So it's going to be a very big change and you'll see the difference too from within the ballpark. I think we'll lose a couple of rows of the bleachers. That'll be replaced with another gathering area for fans and things like that, on the back end of that theater. So build a great experience and I think it really speaks to sort of our ability to think of Fenway as more of a destination, as a venue, as a complementary experience. We want people to come to the area to enjoy sports and to enjoy entertainment and things. >> You know Brian, the consumerization of IT has been kicked around. Last decade, that was a big buzzword. Now the blending of a physical event and digital has certainly consumed the world. >> Absolutely. >> And we're starting to see that dynamic. You speak to a theater. That's a physical space. But digital is also a big part of kind of that complementary. It's not mutually exclusive for each other. They're integrated business models. >> Absolutely. >> So therefore, the technology has to be seamless. The data has to be available. >> Yup. >> And it's got to be secure. >> Well the data's got to be ubiquitous, right? I mean you don't want to, if we're going to have fans attending theater and then you're going to go to Fenway Park or they leave a game and then go to some other event or they attend a tour of Fenway Park, and beyond maybe the traditional what people might think about, is certainly when you think about baseball and Fenway Park. You know we have ten to twelve concerts a year. We'll host Spartan games, you know. This Christmas, I'm sorry, Christmas 2020 we now have sort of the Fenway Bowl. So we'll be hosting the AAC ACC championship games there with ESPN. >> John: Hockey games? >> Hockey games. Obviously we have Liverpool soccer being held there so it's much more of a destination, a venue for us. How we leverage all the wonderful things about Fenway Park and how we modernize, how we get basically the best of what makes Fenway Park as great as it is, yet as modern as we can make it, where appropriate to create a great fan experience. >> It's a tough balance between balancing the brand and having things on brand as well. >> Sure. >> Does that come into your job a lot around IT? Saying being on brand, not kind of tearing down the old. >> Yeah absolutely. I think our CEOs and leadership team, I mean it's not success for us if you pan to the audience and everyone is looking at their phone, right? That's not what we aspire to. We aspire to leverage technology to simplify people's experience of how do you get to the ballpark, how do I park, how do I get if I want to buy concessions or merchandise, how do I do it easily and simply? How do we supplement that experience with maybe additional data that you may not have had before. Things like that, so we're doing a lot of different testing right now whether it's 4D technologies or how we can understand, watch a play from different dimensions or AI and be able to perhaps see sort of the skyline of Boston since 1912, when Fenway Park launched... And so we sort of see all these technologies as supplemental materials, really kind of making it a holistic experience for fans. >> In Las Vegas, they have a section of Las Vegas where they have all their test beds. 5G, they call it 5G, it's really, you know, evolution, fake 5G but it's a sandbox. One of the challenges that you guys have in Boston, I know from a constraint standpoint physically, you don't have a lot of space. How do you sandbox new technologies and what are some of the things that are cool that people might not know about that are being sandboxed? So, one, how do you do it? >> Yeah. >> Effectively. And then what are some of the cool things that you guys are looking at or things they might not know about that would be interesting. >> Sure. Yeah so Fenway Park, we struggle as you know, a little bit with our footprint. You know, honestly, I walk into some of these large stadiums and I get instant jealousy, relative to just the amount of space that people have to work with and things. But we have a great relationship with our partners so we really partner, I think, particularly well with key partners like Verizon and others. So we now have 5G partially implemented at Fenway Park. We expect to have it sort of fully live come opening day next year. So we're really excited about that. We hope to have a new version of Wifi, the latest version of Wifi available, for the second half of the year. After the All-Star Break, probably after the season's over. But before our bowl game hopefully. We're looking at some really interesting ways that we can tease that out. That bowl game, we're really trying to use that as an opportunity, the Fenway Bowl, as an opportunity to make it kind of a high-tech bowl. So we're looking at ways of maybe doing everything from hack-a-thons to a pre-egaming sort of event to some interesting fan experiential opportunities and things like that. >> Got a lot of nerds at MIT, Northeastern, BU, Bentley, Babson, all the schools in the area. >> Yeah, so we'll be reaching out to colleges and we'll be reaching out to our, the ACC and AACs as well, and see what we can do to kind of create sort of a really fun experience and capitalize on the evolving role of e-sports and the role that technology can play in the future. >> I want to get to the e-sports in a second but I want to just get the plug in for Acronis. We're here at their Global Cyber Summit. You flew down for it, giving some keynote speeches and talks around security. It's a security company, data protection, to cyber protection. It is a data problem, not a storage appliance problem. It's a data problem holistically. You get that. >> Sure. Sure. >> You've been in the business for a long time. What is the security kind of posture that you guys have? Obviously you want to protect the data, protect privacy. But you got to business. You have people that work with you, supply chain, complex but yet dynamic, always on environment. >> That's a great question. It's evolving as you indicated. Major League Baseball, first and foremost, does an outstanding job. So the last, probably last four plus years, Major League Baseball has had a cyber security program that all the clubs partake in. So all 30 clubs are active participants in the program. They basically help build out a suite of tools as well as the ability to kind of monitor, help participate in the monitoring, sort of a lot of our cyber security assets and logs And that's really elevated significantly our posture in terms of security. We supplement that quite a bit and a good example of that is like Acronis. Acronis, for us, represents the ability for us to be able to respond to certain potential threats like ransom-ware and other things. As well as frankly, what's wonderful about a tool like this is that it allows us to also solve other problems. Making our scouts more efficient. We've got these 125 scouts scattered around the globe. These guys are the lifeblood of our, you know, the success of our business. When they have a problem, if they're in Venezuela or the Dominican or someplace else, in southeast Asia, getting them up and running as quickly as we can, being able to consume their video assets and other things as they're scouting prospects. We use Acronis for those solutions. It's great to kind of have a partner who can both double down as a cyber partner as well as someone who helps drive a more efficient business. >> People bring their phone into the stadiums too so those are end points now connecting to your network. >> Definitely. And as you pointed out before, we've got great partnerships. We've got a great concession relationship with Aramark and they operate, in the future they'll be operating off our infrastructure. So we're in the point of rolling out all new point-of-sale terminals this off-season. We're excited about that 'cause we think for the first time it really allows us to build a very comprehensive, very secure environment for both ourselves and for all the touchpoints to fans. >> You have a very stellar career. I noticed you were at Scudder Investments back in the '80s, very cutting-edge firm. FTD that set the whole standard for connecting retailers. Again, huge scale play. Can see the data kind of coming out, they way you've been a CIO, CTO. The EVP CIO at The Weather Channel and the weather.com again, first mover, kind of pioneer. And then now the Red Sox, pioneering. So I got to ask you the modernization question. Red Sox certainly have been cutting-edge, certainly under the last few owners, and the previous Henry is a good one, doing more and more, Has the business model of baseball evolved, 'cause you guys a franchise. >> Sure. >> You operate under the franchisor, Major League Baseball, and you have jurisdictions. So has digital blurred the lines between what Advanced Media unit can do. You got communities developing outside. I watch the games in California. I'm not in there but I'm present digitally. >> Sure. Sure. >> So how has the business model flexed with the innovation of baseball? >> That's a great question. So I mean, first off, the relationship between clubs like ours and MLB continue to evolve. We have a new commissioner, relatively new commissioner, and I think the whole one-baseball model that he's been promoting I think has been great. The boundaries sometimes between digital assets and how we innovate and things like that continues to evolve. Major League Baseball and technology groups and product groups that support Major League Baseball have been a fantastic partner of ours. If you look at some of the innovations with Statcast and some of the other types of things that fans are now becoming more familiar with. And when they see how fast a runner goes or how far a home run goes and all those sort of things, these kinds of capabilities are on the surface, but even like mobile applications, to make it easy for fans to come into ballparks and things like that really. What we see is really are platforms for the future touchpoints to all of our customers. But you're right, it gets complicated. Streaming videos and people hadn't thought of before. >> Latin America, huge audience for the Red Sox. Got great players down there. That's outside the jurisdiction, I think, of the franchise agreement, isn't it? (laughs) >> Well, it's complicated. As this past summer, we played two games in England, right? So we enjoy two games in London, sadly we lost to the Yankees in both of those, but amazing experience and Major League Baseball really hats off to those guys, what they did to kind of pull that together. >> You mentioned Statcast. Every year when I meet with Andy Jassy at AWS, he's a sports fan. We love to talk sports. That's a huge, kind of shows the power of data and cloud computing. >> No doubt. >> How do you guys interface with Statcast? Is that an Amazon thing? Do they come to you? Are they leveraging dimensions, camera angles? How does that all work? Are you guys involved in that or? >> Brian: Oh yeah, yeah. >> Is that separate? >> So Statcast is just one of many data feeds as you can imagine. One of the things that Major League Baseball does is all that type of data is readily available to every club. So every club has access to the data. The real competitive differentiator, if you will, is how you use it internally. Like how your analysts can consume that data. We have a baseball system we call Beacon. We retired Carmine, if you're familiar with the old days of Carmine. So we retired Carmine a few years ago with Beacon. And Beacon for us represents sort of our opportunity to effectively collapse all this information into a decision-making environment that allows us to hopefully to kind of make the best decisions to win the most games. >> I love that you're answering all these questions. I really appreciate it. The one I really want to get into is obviously the fan experience. We talked about that. No talent on the field means no World Series so you got to always be constantly replenishing the talent pool, farm system, recruiting, scouting, all these things go on. They're instrumental. Data's a key driver. What new innovations that the casual fan or IT person might be interested in what's going on around scouting and understanding the asset of a human being? >> Right. Sure. I mean some of this gets highly confidential and things, but I think at a macro level, as you start to see both in the minor leagues and in some portions of the major leagues, wearable technologies. I think beyond just sort of player performance information that you would see traditionally with you might associate it with like Billy Beane, and things like that with "Moneyball" which is evolved obviously considerably since those days. I mean understanding sort of player wellness, understanding sort of how to get the most out of a player and understanding sort of, be able to kind of predict potential injuries and accelerate recoveries and being able to use all of this technology where appropriate to really kind of help sort of maximize the value of player performance. I mean, David Ortiz, you know, I don't know where we would have been in 2018 without, you know, David. >> John: Yeah. >> But like, you know >> Longevity of a player. >> Absolutely. >> To when they're in the zone. You wear a ring now to tell you if you're sleeping well. Will managers have a visual, in-the-zone, don't pull 'em out, he can go an extra inning? >> Well, I mean they have a lot of data. We currently don't provide all that data to the clubhouse. I mean, you know, and so If you're in the dugout, that information isn't always readily available type of thing. But players know all this information. We continue to evolve it. At the end of the day though, it's finding the balancing act between data and the aptitudes of our coaching staff and our managers to really make the wise decisions. >> Brian, final question for you. What's the coolest thing you're working on right now? Besides the fan having a great experience, 'cause that's you kind of touched on that. What's the coolest thing that you're excited about that you're working on from a tech perspective that you think is going to be game-changing or interesting? >> I think our cloud strategy coming up in the future. It's still a little bit early stage, but our hope would be to kind of have clarity about that in the next couple months. I think is going to be a game-changer for us. I think having, you know, we enjoy a great relationship with Dell EMC and yet we also do work in the cloud and so being able to leverage the best of both of those to be able to kind of create sort of a compelling experience for both fans, for both player, baseball operations as well as sort of running an efficient business, I think is really what we're all about. >> I mean you guys are the poster child for hybrid cloud because you got core, data center, IoT, and >> No doubt. So it's exciting times. And we're very fortunate that with our relationship organizations like Dell and EMC, we have leading-edge technologies. So we're excited about where that can go and kind of what that can mean. It'll be a big step. >> Okay two personal questions from me as a fan. One is there really a money-counting room like in the movie "The Town"? Where they count a big stack of dollar bills. >> Well, I'm sure there is. I personally haven't visited it. (laughs) I know it's not in the room that they would tell you it is on the movie. (laughter) >> And finally, can The Cube get press passes to cover the games, next to NESN? Talk tech. >> Yeah, we'll see what we can do. >> They can talk baseball. We can talk about bandwidth. Right now, it's the level five conductivity. We're looking good on the pipes. >> Yeah we'll give you a tech tour. And you guys can sort of help us articulate all that to the fans. >> Thank you so much. Brian Shield, Vice President of Technology of the Boston Red Sox. Here talking about security and also the complications and challenges but the mega-opportunities around what digital and fan experiences are with the physical product like baseball, encapsulates kind of the digital revolution that's happening. So keep covering it. Here in Miami, I'm John Furrier. We'll be right back after this short break. (techno music)

>>From Miami beach, Florida. It's the cube covering a Chronis global cyber summit 2019 brought to you by Acronis Kabran. >>Welcome back to the cube coverage here in Miami beach at the Fontainebleau hotel four Kronos is global cyber summit 2019 I'm John 42 days of coverage. We're on J to learning a lot about the global security, cybersecurity and protection marketplace and solutions. Our next guest is Alex Amir Shenko, also known as Alex Miro. Great to have you on and great chatting with you prior to coming on camera. Thanks for coming on. So vice president of cyber infrastructure at Krones. Essentially looking at your platform, that's essentially the hyperconverged stack underneath the platform software. You're enabling kind of the critical infrastructure for it. >>Yeah, that's the one we did a lot of way to describe it. It is infrastructure. We provide the complete stack all the way, whatever you run on top of the standard commodity get hardware, including the virtualization layer to keep that bit different around this, the standard container workloads and essentially optimized for, you know, they all work for the cyber platform. >>You know, your interesting background, we were talking before we came on camera about your, your background. Certainly you've seen waves of innovation, you've been a high performance storage enterprise infrastructure, um, you know engineer and developer and a executive and lot's changed in the past couple of years and certainly the past decade if you're on the V San wave, you saw that storage wave. Now we're in a cloud wave, now we're on premise with hybrid. So hybrid certainly now a big part of the operating model. So the operating system is not just storage anymore, it's, it's a system view. What's your personal opinion on where storage is now? I've heard software defined data center from VMware for years we've been joked about software defined storage, software defined compute, I mean everything software defined but but software is the game scales a game. High performance is a requirement. What's changing storage right now? >>Well and like everything and nothing at the same time. As I said, like, you remember going back to like 30 years ago, I was like, Oh gosh, you know, if the storage is exploding, you know, sooner we're going to have like two gigabytes, you know, company server. Oh my God. You know, and uh, was like, Oh, or you know, where's it going to come in through all like imagining when people started recording music or you know, like they seeing this MP3 thing coming up. So, uh, it's the same game different year, but it's just like, it's, >> it's like this exponential curve. It's like the shape of the curve stays the same. And to be honest, like I like part of me, like never believes that I was like, Oh, come on, how much bigger can it get? And now everybody's like, Oh, we've got IUT line. >>We've got like those cameras streaming things 24, seven, every possible thing you can think of. And of course we've got to store everything. Well, I'm not certain know what to do with it. But um, so from that point of view of the demand keeps growing and you need to have technologists, your handle that appropriate plan. And again, it just not a matter of of kind of throwing the bid somewhere and forgetting about them, it's just keeping them in the predefined water and actually being able to process that. And says in the business of a Cypress perfection and some people say, Oh, you guys just like a up got pain. Yeah. That's the fundamental part of that. But as you pointed out again in our pre game chat is, is uh, the traditional data protection guys be the backup, you know, you can think about as the various, like a raid as a way to protect your data. >>They are all about defending against like physical disruption as a cold. Right? Okay. My DS guy, you know, it was like my data center die like my followup in towels. So, so what do I do? I was the day dependent defendant does not protect it, what I call a logical destruction. I mean back in the, like the classic law school disruption, >> disruption, logic to say destruction, disruption disrupt the same thing. I mean ransomware is pretty much destructive. I mean it's hostage at that point. But I mean you are logical, meaning nonphysical, not like an event like as hurricane or outage or something like that. You removed the wrong file, the right file and you didn't notice that and then you answered several backup cycles and then you realize, Oh I want my file back. But then you like the backup that it had, that file is gone. >>I mean, you know, what are you going to do? Right? Nothing got disrupted and destroyed. Then you files gone. That's a logical disruptions or destructions that happen that's happening. Certainly security points that out. But the secret is, the big thing though is what did, people didn't think about it back. Definitely not like me. Like, like 20 years ago is like the, so what happens if your system got hacked or like people, you know, you know like ransomware, right? It's specifically the product designed to like, you know, knock Vizio storage and I'll lay encrypted, deleted or whatever they want to do there. Um, and again, next thing you know, you like Becking up junk that Villa kid by rest somewhere and then you go to your backups and it's like, Oh my God, where w where does everything, because it's all, it's all that and people have a really strong backup and recovery, but they're recovering malware that they stored. >>Exactly. Yeah. Yeah. Basically it's like, that seems like an office problem, but um, like nobody, but a Chronos is actually provides an integrated solutions to build as that, I mean there are different, I mean, people know what the problem is and the, there are companies out there where like, will scanning your backup archives, you'll find them all the way back. Fine. Great. But then anybody could try to like really deal was the restore in a critical situation knows that even it was out. The malware, it concerns, it's, uh, it's stressful. yeah. And it's not always predictable and as old as predictable. Right. Uh, that if the malware isn't wold it's, you know, it becomes an extremely expensive and sometimes, uh, you know, impossible operation that chronic state takes care of that because, you know, weight can actually monetary backups, you know, we can uh, find out where was the last time your, you know, you're clean, it gets into post hoc in a wearable sleeve practical suit gun, that real time scanning for viruses. >>It's a multilevel cyber protection and which is terribly, you know, I think it, I think it's unique in the industry. >> Well I think it's interesting how you guys have brought data protection, uh, concepts and paradigm and practice by the way into cyber was much more holistic view. Right? And I think that's like an operating system kind of thinking and thinking holistically is about systems and systems has consequences. Something goes wrong over here. It's affecting it hopefully to write software for that. And you know, we have a very strong system background photo DNA as they sometimes like to say that. And then in fact they first virtualizer a virtualization solution and containers for that matter were build by the Chronos engineering team. A building 15 years ago, way before, like anybody in the Linux roles knew how to spell container and what they hoped with the name. >>Um, so that's like our storage layer, software defined storage. It's fully blown the HCI product completely around understanding how to build that. That's, it gives us a unique advantage in the security companies. You know, I've gotta ask you a question. I'm, I'm a, I'm fascinating. I'm a student of history and also student of competitive advantage when it comes to technology platforms. And the one thing I always say is, and see it as entrepreneurs, whether they're young or old, is that there's two types of entrepreneurs. There's a systems thinker and a coder, right? And I think with platforms you can't shortcut a platform because there's trajectory benefits of condoms of scale for putting the work in. You can't put a platform out there overnight. You gotta have a, you gotta gotta build it and it takes time. So people try and accelerate platforms. Some, I've done the work, you guys have done it for a long time. What's your view on that whole, well, I'm gonna throw a platform out there. What are some of the things that get exposed when I try to, you know, push a platform too fast? Uh, well the platform presumes that you have an ecosystem, people actually using it and building stuff on top of that. >>Like everybody have you talked about the coders, right? So everybody program or a software developer are, you must have them, at least they dream of two things. They're right. You are like at creating a new programming language. Finally, the one that gets goes for the other guy and guys like, I'm going to write any operating the system. I went through that phase most elaborate in the system long time ago. And it's, you know, it's a process. I mean, whatever you build has to actually serve the purpose. If you would like. There are lots of platforms in all areas of technology and then people's like, Oh, we can a greatest set of API APIs and anybody can plug in into us. It's like, unless you solve a real problem and really simplify life, people, uh, they're not gonna do that happen. I mean, right. They not going to do like you as a platform for the sake of using the platform. >>Our cyber platform is different because we essentially expose, uh, our API to our technology that's out there and people have been using, I mean, I don't know if you saw the keynote, uh, yesterday, there was the demos the way how to write let's go with a plug in for the sake of a better term for purpose of this interview when people can add, uh, you know, their own policies to a cyber protect workflow, which could be specific to what they're doing, you know, you know, they notarized and things like that, that kind of platform makes sense because it's already out there and that's a respond to customer demands. Like, you know, look, uh, will love, what do you guys do? But we have the specialist is specific set of requirements and uh, keep it general enough, incorporated into the product. But there was also a lot of things which would have been specific to a vertical or even to a specific company. We just want to enable them to do this stuff. >>Of course the platforms are there, enabling enables some capabilities that provides value to that right use case. And that could be custom designed domain specific, but I'm sorry, letting that, that could be domain specific. So the platform is enabled capabilities for someone to do something. >>Yes. But again, the key point to the platform is he, it has to kind of solve a real problem, not be there for the sake of elegance or solution or API and things of that nature. >>Final question for you, Alex. So I'm, I'm a CIO or CSO or I'm out there with decision making. I'm like, man, you know what I gotta get up. I gotta rethink my enterprise architecture. I've got to think about, I got IOT coming, I've got industrial IOT and just an regular IOT. I want to have a comprehensive platform. Um, why Chronis what's the pitch and how do you, and what's different than the traditional Sans and storage and other solutions out there? What's the, what's the, what's that pitch to that enterprise decision maker? >>he kinda like to say as you say, I mean you have a tremendous growth in your, in your, in your data flows, the number of data sources, uh, exploding. It's actually going back to a previous question. I think that's what one of the differences that it's not just a volume of data, it's the like the breadth of the data sources are getting better. So you've got to, to manage that gets a little somehow or it's not an Academy. I don't know. I don't know what they're writing and all. I was like, who all the analogy for that so you can like how do you guys get into manage that? Do you have to protect it please? You have to know what your exposure is of what the things there and just throwing out a bunch of, you know, like standard nuts, technologists when product is not going to solve it. >>I mean, yes, you can hire lots of people. You can build your own thing. You would be effectively reinventing the wheel. Lots of wheels in the process of why have we already have that solution for you? I like the platform idea because it makes data more addressable, horizontally scalable. It's not just a siloed right slot product out there. You can actually work and enabled with data. Data is moving around. You've gotta be acted on yes. And software to do that. Yes, exactly. Exactly. So that's, that's another thing cause it's not, uh, it keeps like in a structured day tourism's unstructured data. There's dispatch discussion's been going on for many years. Uh, you know, they've, the reality is you will always have both types into Google. All of us have, they need to process them in both ways. Um, and let's have one more final question that just popped in my head so I can, final final question. >>What's in the infrastructure platform that you're involved in that people should know about that they might not know about that is important to, to investigate? What, is there a killer feature? Is there a killer thing in there that that is like notable that they should know about? What's the, what's under the hood on the infrastructure side for Kronos? Well, lots of things they don't understand. What's your favorite feature about that? What's your favorite feature? What's the one thing? Gosh, you knows like I have lots of babies. I love them all. I mean hard counting sides. A lot of size. I mean like let's say like, okay, I've been writing storage all my most of my career. I like storage, but that does mean it's more important or less important than other things. You know, unless you have a comprehensive compute layer on top of that, this storage is just then become a storage vendor, a niche for the them. >>So that's not who we are. I'm really fascinated by actually the integration was the like cyber feature in the security because that's on one hand it's not something that I've been doing in my previous carrier for most of the time, but I do have a lot of Ghana understanding how they work flow way. She has an integration points and that's excites me. Something I, that's one of the reasons I integrated platforms is I think the key thing. Thanks for coming on, Alex. Thanks for sharing your insight. Appreciate it. First first thing in the morning here in afternoon. Now you never know them and it's like everybody's so busy. It's the Chronis inaugural global cyber summit 2019 about cyber protection, not data protection, cyber protection. They both work hand in hand. This is the cube coverage here in Miami beach. I'm John furrier. We'll be back with more after the short break.

>>from Miami Beach, Florida It's the Q covering a Cronus Global Cyber Summit 2019. Brought to you by a Cronus. >>Welcome back with Cubes Coverage here for two days at the Cronus Global Cyber Sum of 2019. I'm John Courier, Post keeper in Miami Beach at the Fontainebleau Hotel, and I am here with the CEO and chairman of Cronus SP Sergei, known as SP. >>Yeah, joining that, that's fine. It's fine. >>So your inaugural event of the Global Cyber Summit What you're what you're feeling so far like it's >>very good to have exceeded the expectations. In terms of a dangerous with high quality audience. Everything is organized quite well. It's our first event of a kind. It's a first marks a transformation of the company from being data protection company to be decided protection company from the application company to be a platform. >>Talk about the vision and we're how you got here. Because again, the market's changing cloud computing, Internet of things, more threats than ever before data seems to be at the center of all this. >>Don't think about the team in terms of data, will look at 18 terms of foreclose, so workload could be day to put the application for the system. We also look at the team, not from the standpoint large passed him a small fast mark, but from the standpoint off and point, like your computer right here on the table or a mobile device from step with authority, which is a large that the center of a gentle price. Or it is a cloud like Amazon, like Google, like Microsoft. And from the standpoint of something in the middle, which we call EJ, and it's growing very rapidly, that's a small data center. That more door is that a small office that's also specialized vacations, like practically my hospital, like a railway station like restaurants. Like any retail location where you actually have specialized computers. Detective Lee servers running the infrastructure, for example. Every Starbucks location is actually 12 and those computers edge and then point. Need protection, need complete protection. And our mission is to provide a complete protection from the standpoint of safety, accessibility, privacy, authenticity of security that something which will go for any of us. >>You know, I think your divisions right on. In fact, when you think about data protection, my observation is it was because of disruption and operations. Somehow an event happened. Hurricane flood the operation of destructive. They gotta roll back and get the snapshots and bring it back. But security is now causing a disruption. I think you guys are honing in on with disruptions coming from a security vector way. Official mechanisms have to change a little bit. That seems a bit your success here with. >>I think we look at this holistically way, don't see really different, so safe its accessibility, privacy of authenticity and security. A love. This vectors are a problem, you know, perhaps authenticity. He's not yet visible as march, and privacy is new, So privacy is not the bad guys. You know, it's a good guys, guys. It's maybe yours. Employees. Maybe your partner. Or maybe maybe it's your customer. One. You don't want to see the information about somebody else and so alone. This is a threat, and you really don't want your infrastructure to be damage to your business to yourself. Unintentional damage. If you want to break something, you better break it, wasting your decision and you better be able to roll back so you know it comes from data protection, but it goes to security and privacy and authenticity. All of this together is important for defensive your idea. Infrastructure is functional and old times controlled by you. >>In your opinion, has ransomware provided a wake up call to I t around this area? Because that seems to be a theme. A lot with Ransomware. People realize that they're stuck highlights >>a problem somewhere is an interesting trend. I wouldn't really be happy about Ransomware around somewhere is a scene. So we help people to be protected against run somewhere. But that doesn't mean we like Ransomware. So yeah, >>extortion. Not really. Well, like, yeah, you're the one being extorted. >>Nice. But it's one of the wake up calls in reality again. It comes from all the directions. I think Ransomware is just very, very easy to understand. >>People can see and understand it. Explain You mentioned s a P A s. What does that explain that acronym? What does it mean? What's the vision behind >>Sabba says is safe Accessibility, privacy else intensity and security combined in a single product. That's what it means. It means that you know, don't lose in using everything is accessible at all times with the right people have access and you can control the access. Nothing is mortified in such ways that you don't know it was modified and no bad guys can break into your tea or into your date or NT applications >>you mentioned. The platform platforms are well known concept and computer science and certainly the Internet. You've seen great successes with platforms, enable something. How would you describe the enablement that comes from Cronus platform, Cyber platform. >>I think it comes back to what you start at the waist. There is a lot of new friends and part of this new Frances. The world for a while maybe 20 years ago looked like the world which is consolidating. And you can one vendor which provide solutions to watch majority of problems. Which was Michael, right? So you remember 1999. It looked like pretty much everybody is gonna use windows. Mark is not going to be there. Microsoft was making some inroads in Mobile was in C and so on and so forth. Well, now the water is consolidating. You have thousands of different types of workers. You have different systems. You have different applications. You have different cloud applications. You need to protect them in a very different way. That's another thing you need to integrate a lot about. You cannot do it all. So we opened our applications and our black from certain parties. Was event like this toe actually build on top of the platform to provide the functionality, which we don't >>You say that word system a few times, and I think this is interesting platform validation systems Thinking is like an operating system. It's a lot of consequences and systems The old system that seems that systems thinking is back in in the front lines of I t and technology because you got a cloud you got on premises, you got I ot way networks. It's a system, and so realistically thinking about it's interesting. Do you think people are getting their are you get the right thing to do? I think like a system >>wear simple people in a Cronus. We look at the world and we don't see anything but data by zeros and ones way don't look it everywhere, and I don't see anything but more clothes and these workers they could be in the cloud that could be on prayer. Music would be a partner location. It could be on your mobile device. It could be the whole device apart with. And we also see the world in terms of partners. And from our point of view, you know, it's it's was that people realize that, you know, people have idea needs to work on their partners to help him. So if I did, that work can do, innit? They cannot call their friends. They can communicate is a relative word possible head of the world. And so what we provide is a protection to make sure that it works a full time, no matter what is a possible challenge. >>That's me. Thank you for taking the time to answer some questions. I want to get one final question to you. News today Opening AP Eyes up Trading Developer network and a portal New New things. What's your message to the folks that want developing on your platform? What's the guiding principles with what's the simple value proposition of why I'm a developer? I wouldn't want to work on The Cronus is Global Platform >>so way might look relatively small. We're only 1.5000 people and we're only several $100 million. They were growing very rapidly. We have 6000 partners who can sell your products, and this number is going. Read it after you have 30,007 years. And so you have also a lot of data on the management. Five exabytes of data on the management and this amount of it is growing very rapidly. If you build applications for protection of this data, this number of workloads, this number off partners to sell it, you can sell your products successfully. Ultimately, for developers, it's It's about doing something which makes money and doing something which makes sense. And with our partner network, with our workload and they reach, they get to make sense and they get to make money. >>And it's a hot area. Cyber protection of a new Category Emerging out of the old data protection If you had to describe someone, the old waivers of the New way data protection the old way. Cyber Protection New Way. What's the difference between the two? >>Well, the difference is that includes security, privacy management, know sadistic management in one package. The difference is that it's designed to work in the world which is in parenting secure. It designed to work in the world where if you connect a network, you don't trust this network. And so if you have a cyber protection application cyber protection car where it has to be protected itself, that's >>thank you. Come on. Cue and taking the time out of your busy schedule to talk to us. Thank you. Very welcome. Appreciate it to give coverage here in Miami Beach across Global Cyber 7 2019 I'm John. Four year. Thanks for watching two days of coverage here. Be right back.

>> Narrator: From Miami Beach, Florida, it's theCUBE. Covering Acronis Global Cyber Summit 2019. Brought to you by Acronis. >> Hey, welcome back, everyone, it's theCUBE's coverage of Acronis Global Cyber Summit 2019 here in Miami Beach, Florida, at the Fontainebleau hotel. I'm John Furrier hosting theCUBE. We're here with Craig Weir, Director of Cloud Portfolio at Ingram Micro. Welcome to theCUBE. Director of Cloud Portfolio at Ingram Micro Cloud, so you guys have a cloud and you guys have sales, technicals out there? >> We got everything, so we have the platform itself, so we have our own platform that is used by one-third of the world telcos. We have large VAR's, DVAR's, SP's using our platform. We're also a cloud aggregator, so we offer pretty much any vendor solution on there, so today, we have over 200 solutions on our platform. We offer services to help partners grow and expand because jumping from where they are today to where they want to go tomorrow is very difficult, so we offer those services, so it's a full package. >> You know, I'm really impressed with Ingram. I got to tell you, Ingram Micro, you guys have essentially reinvented you guys' self in plain sight, so it's like changing the airplane out of 35,000 feet, it's really hard to do. You guys have done it, you've essentially taken a distribution model to the cloud, maintained that stickiness with your clients and partners, and now have automation built in. >> Yeah, we always talk about: we're building a plane while we fly it. And we've been doing that for 10 years. We were the first to get into cloud, we're the world's largest distributor, we know that, but times are changing and you need to adapt with it. So we want to get ahead of the curve, being that we want to own the platform, so we made large acquisitions to be the number-one platform provider. We also want to do the value-added service because partners today want to make that change. They're starting to make that change, but they're not sure exactly how to do it or how to monetize it correctly. So we realized, earlier on, we need to make a massive investment and DNA change in what we do. The old word of pick, pack, and ship is gone, right? Distributing now means a million things that we do. We're more of a service provider than we are anything else. >> Yeah, it's so funny, and also, gross margin used to be higher in the old days. When they started to get hit, started getting out of that direct distribution, there was margin pressure, and again, channel businesses are very efficient. The weak don't survive very long and the ones that are smart actually evolve. This is a great case where you can wrap services around it and, with the cloud, you get operating leverage. So you have an investment, now you have a business model for the next 10, 20 years. >> Yeah, if you think about distributions' basis points, it's a term that doesn't really exist outside distribution where you're razor-thin on those margins, but to your point on cloud, it's much heavier lift, it's much more cooperative selling, so obviously, we want to focus there where we can have growth at a higher profitable rate. And, if you can wrap around platform services around that and make you more money and give more value to the channel, why not? >> Well, that's what the channel wants. They want profitability, want to keep their customers, and increase their gross profit, and that's from services. Now, with software economic margins coming in, the revenue is higher. Software economics are great. >> Yeah, and I think a lot of partners today, NSP's, LAR's, VAR's, DVAR's, they don't really know what is their company actually worth? What's the multiple, right? And they're trying to do that assessment of how much your businesses are actually services and how much is that just reoccurring on an annuity basis, not managed service in some respect. So, for us, we look at that and say, well, how do we actually help you migrate that business? We want to get you to 60, 50, 70% services-led where you're making an average of 10, 20, 30 points. >> And a lot of your partners too have long-standing relationships with customers. And so, by you innovating, that just trickles down to them. That makes it sticky for you guys, great business model. Craig, talk about your relationship with Acronis. We're here at their Global Cyber Summit 2019. Talk about what you guys are doing with them. >> So we've been with Acronis for six years now. We're their largest distributor worldwide. We operate from pretty much every country we operate. They're one of our leading, actually, they are our leading backup disaster recovery and cybersecurity solution. We've an amazing partnership at every single level. When it comes to how we go to market, how we back its position, how we recruit enable partners, it's really next to none. We've very, very aggressive timelines and goals for next year for where we want to go, and where that means it's actually growth, expansion, service offering, no matter what head count we have towards this initiative. Acronis is our number-one provider. >> They have a similar DNA and they're thinking like you guys do with the cloud, thinking about how that transformation business model evolved for Ingram Micro. They're seeing it now with their unique integrated... Well, it won't be unique for long 'cause I think everyone is going to copy it. This integrated holistic view having a platform that's an enable, not just hardware, the infrastructure, where they got a platform layer which is enabling capabilities for sets of services on top. Theirs and their ISV's and developers, I mean that's just a proven platform formula. What's your feedback on that? Do you see that translating well in the field, in the partner networks? >> Yeah, very well, I think today, you think of backup disaster recovery as legacy backup disaster recovery. Where am I backing up to, why am I backing? It's for that disaster. Not remediation of issues, security risks. You're seeing them go into a completely security play which someone argues and says it makes no sense, your backup disaster recovery, your BDR. But, if you think of the ransomware attacks today, the fact that I can have a safe copy hooked up in minutes, the ransomware is no longer an issue. And how they position that is really a security end-to-end solution. It doesn't mean you don't need any other security. Obviously, you still do. But it comes at a very different angle and I think it provides a bit of clarity to customers who are confused. They said that earlier, they mentioned: how many different security providers are becoming open every single day? >> No one wants to buy another tool. >> No, and there's no more large mega offer. There's no one solution. >> You know, solving the ransomware problem certainly is a great way to get breached in any account. Hey, I get the mousetrap for solving ransomware. In that case, that's when a better mousetrap works. You're right to the front of the line. Then, once you're in there, then you got to figure it out. This is what's interesting to me is that it's a data solution. I think you cracked that nut, it's a winning formula. >> If you think of a really basic, what are we trying to do or who are we trying to protect? Either people or information, right? We're not worrying about protecting people today. We're talking about information, so at the end of the day, what's most vital for a company's organization? You're looking at their customer data, their personal data, financial data, and if you think about would you want them to have access to, how do you want to mediate that? So the ability of end-to-end and how that story, which was really, really important to the customer, to have the clarity on why, is critical. >> Well, you guys do a great job on security. I read your reports every year that go out at VMworld and Reinvent, all the different events you guys go to. You guys have great security groups, props to those guys. I want to get back to this data backup thing that you mentioned earlier 'cause we had some insight from our conversation. I was just on with a Forrester analyst where, if you look at backup and recovery, it was basically because it was some operational disruption. That had nothing to do with security. I was like, lights go out, hurricane, Hurricane Sandy, whatever happens, something's happening. And that was all built around the continuity of its down rollback. But now the disruption is security. So no one's actually thought about it that way. So I think these guys have a great angle. I'm thinking of it like, well, if the disruption's security, that eliminates almost all the current solutions because they're just rolling back bad code. >> I don't think it eliminates all of them, but it's a great point. >> Well, the majority of them. >> You sit there and go, well, why is Acronis a security provider? It makes no sense. And you sit back and start thinking about the approach 'cause, again, we're thinking old BD and R. The new world of backup and disaster recovery is not the disaster being a natural occurrence or something with this were to happen. It's the every-single-day cyberattack and ransomware that's happening on a regular basis. That's the new norm. New norm isn't the hurricane, it isn't the cyclone, it's security attacks every day. >> And, happening weekly, two towns are being taken out. Craig, observations from your standpoint being an industry participant. Got experience out there in the field, talked to a lot of customers. You guys have your own cloud. Just in general, the top story of this whole cyber protection, security, data world, what's the top story in your mind? What's the most important story that needs to be continually covered and talked about? >> I think what we're missing today is a lot of partners aren't protecting their own house. At the end of the day, when an MSP is looking after their end user's data, do they really understand what they're responsible for? Do they have the right system in place, right? It's back to the constant security attacks. We're seeing, time and time again, MSP's, medium to small, are having massive breaches and going out of businesses in no time. You see MSP's who want to go to MSSP, but that requires-- >> John: What's that mean? >> Managed security service provider. >> John: Okay, all right. >> So you're an MSP specializing, dedicated on... And security, you have a SOC, which means you have a security operational center, meaning that you have to either buy that or go and invest on it or maybe partner with somebody. It's incredibly expensive. So MSP's today-- >> John: The compliance and the insurance alone. >> The compliance, insurance, the expertise. There's a massive shortage of people. So we see the MSP's today may be fine. Maybe 10% could go make that leap to MSP so that everyone else is figuring out: how do I manage the security space? I have all these different offers I have and solutions I have. A lot of them are homegrown, they're not very good. So, at the end of the day, when we look at what's missing is, hey, if you're an MSP, is your own house protected? Before you try to put everyone else's. Because, if you're managing all that data from that partner, you better make sure your house is protected. >> Protect your own house and I think that's interesting, what just came out of Acronis is that, it's a little bit of a flashy announcement, but the blockchain notary, they say, hey, we'll protect the data in all forms and we'll encrypt it on a blockchain. So that speaks to this blockchain problem. Well, data's a supply chain. >> It is, and you sit there... Again, let's talk old backup disaster recovery. You have data somewhere, it's a copy of your file. Do you know it's a clean copy, an authentic file? Do you know that something hasn't happened to it? And before, we never would've known that. Now we do. >> Yeah, well, I've always said in theCUBE, Dave Vellante and I talk about storages, not about the storage, CPU's and the hardware, but the data that's being stored. Take care of your own house first before you take on other people's data. I love that analogy. >> Yeah and customers are getting smart these days. Customers are looking, they're doing reading. Most customers look each at a time. They're looking at word-of-mouth, a trusted advisor, and they're doing research online. So they're demanding this. >> Craig, I really appreciate your insights. Thanks for taking time to share. Take a minute to give a plug for what you guys do in the cloud, how does someone get involved and work with you, what's a customer for you? Take a minute to give a plug out for what you guys do. >> So Ingram Micro, so we're the largest cloud organization in the world. We'll talk U.S. specifically. >> John: Cloud? >> U.S. cloud. >> John: Amazon's bigger. >> As a distributor. >> John: Okay, distributor cloud, that's what I thought. Just to make sure, you keep an eye on them. >> Yeah, no, it's a good point. So we actually are, we do distribute AWS, we do distribute Azure. They're largest for both of them in the channel perspective. But partners today, what I would say the opportunity to them is there's those who play very heavily in the space, then those that do not. Everyone is somewhere in the middle. Working with Ingram Micro, the ability to really, what we said, the Cloud Awesomeness Roadmap which we presented earlier, we're taking a partner from infancy maybe doing a handful of SaaS offers today to going 10, 20 offers on a regular basis. We really enable and train them to make that jump both financially and from a skillset perspective. >> Can anyone get involved? You guys have a vetting process? They have a cloud SaaS app? >> Yeah, so cloud marketplace, if you're an Ingram Micro account today, you have a free account into our cloud marketplace, which is our e-commerce buying engine which is built on CloudBlue, which is our platform. Free access to it, online purchasing of any SaaS offer you want, depending on what the authorizations are by the SaaS offer. Free access to our team when it comes to how to enable support them, whether it's security, UCA's, backup disaster recovery, public cloud, Microsoft, you name it. And it's really a team dedicated to help the problem solvers, which is everyone here today, solve the current problem of how to get more of an annuity subscription basis. >> Awesome, well, congratulations. Cloud marketplaces are hot, you guys are number-one channel, distributor, cloud, whatever it's called. Is there a category? >> For making new-- >> Channel cloud. >> Yeah, you could say-- >> Distributor cloud. >> We're a distribution service provider. >> Congratulations Ingram Micro trends. Building the plane while they're flying it, I love that one too. It's theCUBE, we're a-flying here in Miami Beach at the Fontainebleau hotel for Acronis' Global Cyber Summit 2019. We're back with more coverage after this short break. (upbeat electronic music)

>> Announcer: From Miami Beach, Florida, it's theCUBE. Covering Acronis Global Cyber Summit 2019. Brought to you by Acronis. >> Hello everyone, welcome back to theCUBE's coverage here in Miami Beach, Florida at the Fontainebleau Hotel for the Acronis Global Cyber Summit 2019, where cyber protection is becoming an emerging trend. And we see these once in a while, when you have these big waves, you know, some unique trends. Observability and cloud computing, automation and cloud computing came out of nowhere from these white spaces. Now you're seeing the confluence of data protection and cyber security coming together to the platform. That's what they're talking about here. And my next guest, to break it all down, is an analyst from Forrester Research, Naveen Chhabra. Thanks for joining us today. >> Thank you for having me here. >> So Miami Beach, not a bad venue is it? >> Oh yeah, absolutely. (laughing) >> Get a dip in the ocean there, the water's warm. I got to ask you this, break down this market. Acronis is on here earlier. They've got a story to tell, and their story is not something that's obvious. It's kind of a new category, I guess, emerging, not really a traditional category from a research standpoint. But cyber protection by combining traditional thinking about data protection and cyber security software, bringing them together into one thinking, wholistic data model, with a platform that can enable services. I mean, this is a classic platform. This is what these guys have. What's your take on the industry? Is the industry ready for this? Is this a real trend? >> The industry certainly needs the technology, and I'll give you some examples as to why. So if you think upon the ransomware attacks that have happened in the past, the ransomware attacks would cripple any organization, right? And the best defense that an organization has to recover from, backups. Now, what that means is, okay, I can certainly recover from a backup which was taken last hour, last yesterday or a few days back, a few weeks back. But the most important question is how do I find out that the last copy or the last snapshot is a clean, uninfected copy? Because that's important, right? So if you recover from an infected copy, you're going to be hit again. And you don't want that, right? So, the million dollar question there is how do I get back to the copy which is clean and uninfected? Right? And you cannot do that traditionally the way organizations have been structured. You have infrastructure and operations guys, those who are responsible for operations, you know, keeping copies in their place, wherever required, and then you have the second group, which is security and risk, which is responsible for identifying all things security, right? But, ransomware is one thing in the industry which is pulling these two teams together. But the organizations are not ready yet. In one of the surveys that I did, I asked the respondents, "Do you have these two teams working together "to solve this problem?" And the answer was abysmally low. You know, no they don't work with each other. >> You point at a great point. I think one of the things you highlight there that I think is really critical is backup and recovery was because of some operational disruption. >> Naveen: Yes. >> Outage, flood, so rollback. The disruption wasn't a hack, so to that point, all those mechanisms around, generations of backup and recovery didn't actually take into account security. >> Exactly. >> Meaning the malware or the infection, the disruption is coming from a secure breach, not some electrical outage or some sort of other disruption. And they used to call that non-disruptive operations. I remember all the stories when we just talked about that. >> Right. >> Now it's not that anymore. The disruption is coming from security, so how do you bake security in from day one? That's the million dollar question that I always hear. What's your answer to that? What's the industry doing to get security baked in? What are some of the mechanisms you've seen successful for a large enterprise to adopt a plan that way? >> So I, specifically from a technology standpoint, I see very little efforts. The technology vendors are doing their own efforts, but you know, my guidance to clients is to be proactive in terms of your using the right storage for that matter. Let's say, if you have a WORM storage which can not be encrypted. Written once, cannot be changed, right? Use that model which will ensure that whatever you backed up yesterday, one, the backup is not infected, right? Or even from your core business application standpoint, you know, you want to schedule the data to be kept at a particular point in time to that WORM storage, for example, right? I don't see much of an effort from the organizations because, again, inner security is a domain which is handled by security, backup has not looked at using WORM as a potential storage target. >> WORM being "Write Once Read Many" for the folks-- >> Yes. >> at home tracking this. >> Right, and not that they do not know the technology. They know the technology. It's also about thinking out of the box and applying what's available to another-- >> To a known problem, right? >> Yes. >> And ransomware is so bad, it's such a hard problem to solve. I've heard (mumbles) has been in solution, WORM's a good one. That's the first time I heard that. That's awesome. It makes sense. >> Absolutely. >> But how do you deploy that to scale throughout the enterprise where you had these traditional work stream workflows that-- >> That becomes a problem. >> A people problem. You've been doin' a lot of work around the people equation. People process technology, everyone says it's digital transformation. But the people equation is a hard nut to crack. What's your take on the people situation? >> It certainly is a hard nut to crack because security would not trust more infrastructure in place that our guys would be doing. They've been told to operate in that model and now comes a situation, ransomware situation, where they're asked to trust each other and work with each other. Boy, that's not happening, is it? (chuckles) >> Yeah, they hate each other before, now they have to like each other. I mean, that's been a 20 year, 10 year, 5 year you've seen it evolve over time. Dev Ops is certainly with the cloud enforced a lot of that. That's kind of what brought people together under the Dev Ops infrastructure's code. But we're talkin' about application development that's growing like crazy. (mumbles) C.s want to build in-house stacks and communicate via A.P.I.s and, or some data-sharing with vendors. So this idea of a lot of this there's a restructuring that's going on at least from a architectural, technically, and staffing. What's some of the best practices that you've seen? What is some of the customer environments out there that you can talk to to show and point at a success story? >> I think some of the examples I've seen organizationally addressing this problem, wholistically, is to start from the top. I came out with this report a couple of years back titled Ransomware is a Business Continuity Issue. So don't approach it with a technology solution. Eventually, you will end up in adopting that same technology but I didn't define why do you need to use that technology so that it ties up your business requirements. So start from identifying that as a business risk which I see very little organizations do that today. Cyber risks are not identified as vulnerable as important a risk as they should be. So start off from that and trickle down into the next sub-steps that you must be taking, going eventually to the same technology. >> You know, one of the things I want to get your thoughts on is that obviously the digital threats are the industrialization of automating attacks. You're seeing Zero-day, you're seeing all this malware out there. You got surface errors with I.O.T.s increasing. So, the threats are coming. They're not going away. In fact, they're going to be increasing over time. Maybe get, you might not see it like D-DOS kind of been distracted away. But now the complexity is a huge issue because the costs will kick off of the complexity, this is something that Acronis is talking about and this is what I want to get your thoughts on. Complexity is one of those things that if you don't solve it and you look the other way, it gets more expensive to solve over time. So as complexity piles up, it's like climate change or cleaning up the Boston harbor. The longer you wait the more expensive it's going to be. >> Exactly. >> So that's startin' be be realized in some people's minds. They call it re-platforming, digital transmission, there's just buzz words for that. But I think this is a reality that people like, "Oh, I got to get... "I got to take care of business." I got I.O.T., I got complete industrial I.O.T., N.I.O.C. I got all those data centers movin' to the cloud. I got to clean up the complexity problem. What's the answer? How do you, What's the research tell you? >> Unfortunately, there's no easy answer because all the tools, technologies the organizations are using, they're using it for a purpose. So silos is a challenge, increasing silos is a challenge. So, I would highly recommend organizations start to think about reducing the silos, not be reducing the tools, but by potentially looking at cross-liberating by integrating, right? And one of the examples here is very important around recovery from ransomware attacks. So, going back to the point that, "Okay, how do you identify where is the right, "clean copy of the backup?" So these two teams would have to work together. Now the teams would work right out of their heads. They got to depend on technology, right? So that's where the requirement of the tools, themselves, working with each other, security to identifying, "Okay, when to do the forensics tracing "you know where the ransomware part "would identify when did the ransomware get in? "When did the malware get in? "Which systems did it infect?" And then, the backup tools correspondingly acting on those backup instances which have been identified as clean and uninfected. Easier said than done, but that's a part forward. >> And the other thing to make that more complex is that you said business continuity before, that's a people issue, as well. Not just technical process. >> Absolutely. >> Okay, so the two has to have a plan. Like, "What's the plan?" Do they actually huddle and do dry runs? Do they have fire drills? I mean, these are the things that most cyber groups do. They tend to have, you know, very structured approaches to either incidents, response,... So as these worlds come together, what does your research tell you around (chuckles) the questions of working together, proactively, show you? >> Interestingly, enough. I, a couple of years back, I did a survey asking those organizations who have been hit by ransomware attack and have lost data. I asked them, "How many of you have these two teams "working together?" Apparently, you know, some thirty-odd percent responded and said, "Yes, we have these two teams working together." But among, you know, asking final questions, qualifying questions about, "Yes, these two teams "work together," but do they effectively and eventually get to where they should be. Like, have a common plan, right? I think three, four, five percent of the respondents would say, "Yes, we do have a common operating, "understood plan "between the two teams." But largely, all I can say almost all organizations do not have that plan, unfortunately. >> You're, I think, one of the first ransomware experts I've had on theCUBE that's done a lot of research in the area, directly. So I got to ask you on ransomware, first of all it's really bad news and it comes from multiple actors. People lookin' for cash and also state-sponsored, which I believe is goin' on a lot, but no one's reporting on it, but, you know, still that's not proofed yet, but I still get a feeling it's done. On ransomware, do you have any data or insights around if the people clean up their act and get fixed, because I see a lot of ransomware coming back to the same places where they hit once, solve it, pay some bit-coin or whatever their extortion currency is, and then they get hit again. And hit again. Because (clap) there's cash there. Do you see that as a trend? What's the data? Is there any anecdotal insight or are people gettin' hit twice? Three times? >> There are incidents, and I was speaking on, you know, on a panel like half an hour back, and I gave this example. There was a hotel chain in central Europe which was attacked. And the key management system, like if you're one of the guests of that you would not be able to get in, into our rooms. And while they paid a ransom for to release that key management application, they didn't secure that infrastructure and applications further, which was required. And three months later, they were attacked once again. So such incidents are happening. And that's where, you know, guidance from Forrester where we have published a paper about when to consider to pay ransom. Because, you would not be sure that you get the keys. You get the keys for all the data? You don't get any traces of malware left behind or a new malware coming in. You never know, right? >> Of course, yes. >> While this is an untrusted world, but you got to trust if you're paying. (chuckles) >> Yeah, well I think I would bet that the criminals would come back for, you know, new shoes, new coat, new car... They need new things. They need cash (clap), they're going to come back to the bank. >> Absolutely! And they're coming back to basic prey. >> Naveen, thanks for comin' on. I want to get your thoughts on the industry as we wrap up this segment on the trends around cyber protection, data protection, platform. You know, really we're living in a cyber data-driven world. And data is a key part of it. What's the most important trend or story that you think needs to be told or is being told today, in terms of customers to pay attention to? What's, is it ransomware? What's, in your mind, are the top three things that are the most important stories that must be covered or need to be covered, or aren't covered? >> So I think it's not just my story, it's about the state of affairs at an industrial level, globally. I was referring to the World Economic Forum where all the global risks that economies face. It could be famine. It could be a country going bankrupt, right? It could be any other risk that the industry faces. We have seen that, to that starting the World Economic Forum did, in the last 10 years, cyber risk has started to appear on the list of top four, top five risks for the last three years. >> In the world? >> Globally. >> Global issues? >> Global issues, yes. And one of our research also tells us that the number of ransomware incidents have grown 500% in the preceding last 12 months. And the impact, intensity, and frequency of a ransomware attack is simply great. Many organizations are actually shutting down operations. Medical practice in mid-west, called upon the practice and said, "Oh, they are closing operations?" And in fact, it's in public domain. "We're closing operations, you can come back to us "for whatever data we currently have on you." But, I mean I think that from a regulation standpoint, people (mumbles) so that you have to keep control of the data and also be able to provide. But guess what? In this case, the medical practice doesn't have data. If you were their client, if you were a patient they don't have any data on you. Guess what? If it was there for years, you've lost years of your medical data. >> So global issues, ransomware's real and cyber attacks are happening at high frequency. >> Absolutely. >> Naveen, thanks for comin' on. Naveen Chhabra, senior analyst at Forrester Research here inside theCUBE. We are at the Acronis Global Cyber Summit 2019. I'm John Furrier. Back with more coverage for two days here, in Miami Beach, after this short break. Stay with us. (techno music)

>>From Miami beach, Florida. It's the cube covering a Cronus global cyber summit 2019. Brought to you by Acronis. >>So Ron, welcome back to the keeps coverage of kronas cyber global cyber summit 2019. I'm John furrier here in Miami beach. Our next guest is Pat Hurley, vice president, general manager of the Americas in sales and customer relationships. Get Debbie Juan. Hey, thanks for having me. Welcome to Miami beach. Lovely place to have an event. So I hear ya. You got a lot of competition going on between the U S America's in the AMIA teens and it's very competitive group. >> The European team is very confident. I think we'll show them tomorrow what we're made of. We've been recruited very hard for some players that are Latin American. I think we'll show them a finger too. You've got a big soccer story there. We do. Yeah. We've, uh, we've got a few sports partnerships that we have across the globe. Uh, some of the first partnerships we had were actually within formula one. >>And we really try to correlate the story of the importance of, uh, data protection and cyber protection in the sporting industry because a lot of people don't think about the amount of data that's actually being generated in the space. A formula one car generates between, you know, two and three terabyte through three gigabytes of data on every lap, tons of telemetry devices that are kicked, collecting information from the car, from the road service, from the, the general environment. They're taking that data and then sending it back to the headquarter, analyzing it and making very small improvements to the car to make sure that they can qualify faster, run a faster lap, make the right type of angle into a turn, uh, which can really differentiate them from being, you know, first, second, third, 10th in a qualifying session. On the soccer side. We do have some partnerships with uh, arsenal, Manchester city, inter Milan, and we just signed a partnership as well with Liverpool. >>So we are very popping in that space here in the U S we have some other sports that we're big fans of. I'm personally a big Boston red Sox fan, being a Boston native and we do have a sports partnership with the red Sox, which has been an unbelievable partnership with them. And learning more about the use cases that they solve and using our technology has been really cool. >> You know, Patty, you bring up the sports thing and we were kidding before we on camera around the trading, you know how people do sports deals and they trade, you know, merchandise for consumer benefit or customer benefits. But really what is happening is sports teams encapsulate really the digital transformation in a nutshell because most sports franchises are, have been traditionally behind. But now with the consumerization of it and digital can go back to 2007 since the mobile phone. >>Really, I mean it's iPhone. Yeah. Since that time, sports and capsulates every aspect of it, consumer business fan experience. And it really has every, every, almost every element of what we see now as a global IOT problem opportunity. So it really encapsulates the use case of an integrated and and needed solution. Oh yeah, absolutely. I mean, if you think about the amount of data that's, that's out there today and the fast way that it's growing, you know, the explosion of, uh, of data in the, in the world today, sports have different unique challenges. So obviously they have large fan bases that need to be able to access the data and understand what's going on with their favorite sports teams. Um, for us it's really, you know, these technology partnerships that we have with these guys, it runs through all these different areas of, you know, in many cases we didn't really understand that they were using it for. >>So, you know, the red Sox for example, they've got Fenway park and iconic stadium, you know, the Mecca of baseball. If you haven't been there yet, I suggest all your viewers that they go and check it out, give me a call, we'll try and get you set up there. But, um, you know, the, the, the experience that the fans have there is all around their data experienced there. Right? And it's not just baseball games. It could be hockey games that Fenway park, it could be a concert that they're having. A phone buys a lot of different events. These stadiums are open year round and the ability to move, share access, protect the data in that stadium is really important to how they're functioning as an organization. We talked to their I-Team quite regularly about how they're using our solutions. They're talking about uh, different aspects of artificial intelligence, different ways they can use our products and machine learning. >>Obviously with the new solutions that we have in the market today around cybersecurity or helping them to address other challenges that they face. Um, as an organization, these are realtime challenges in their physical locations, national security issues, terrorist attacks could happen. There are venues, there are public gathering places too. Absolutely. We announced our partnership with them back in may and I was shocked to hear them on the main stage announcing that they had this great partnership with the Kronos was talking about their unique cyber security needs. They started talking about drone technology and I'm thinking, all right, a drone flies in the stadium. Maybe at breaks and it falls on a player and we're paying $20 million for one of these pitchers to be out there on the Hill or an interest, a fan or maybe they're collecting some video data to then share it out. >>And that's red Sox IP. No, they're talking about cybersecurity threats in the sense that a drone, a remotely controlled device could come in and lightened incendiary device in the, in the stadium and that to them as a real security server. And that's frontline for the it guys. That's what keeps them up at night. Yeah. And that's really an attack take time. Oh yeah, absolutely. What are the use cases that are coming out of some of your customers, cause you guys have a unique integrated solution with a platform as an end to end component too. You have a holistic view on data, which is interesting and unique. People are kind of figuring this out, but you guys are ahead of the game. What are some of the use cases that you've seen in the field with customers that highlight the benefits of taking a holistic view of the data? >>Yeah, absolutely. So we look at it as kind of backups dead, right? We have, we've combined the old world of backup and disaster recovery with the new world of cybersecurity and we combine that to a term we're calling cyber protection because it really requires an end to end solution and a lot of different things need to be working properly to prevent these attacks from happening. Uh, you need to be very proactive in how you're going about that. We address it with what we call 'em, the Kronos cyber platform. And what this is, is a unique, multi-tiered multi-tenant offering that's designed specifically for service providers. We have just under 6,000 servers, providers actively selling our cyber protection solutions today and they use this for are for a multiple different aspects. And usually the beachhead has something like backup. Every company needs backup. It's more of a commodity type solutions, a lot of different players in the game out there, but they take it a step further, use that same backup technology to then do disaster recovery. >>They can do files, they can share, they can do monitoring. We have notary solutions based on blockchain technologies. Now, this whole suite of cybersecurity solutions, all of this is with a single pane of glass, one platform that of a service provider can go in and work with their customers and make sure that their data is protected, make sure that their physical machines are virtual machines, they're PCs, their Macs are all protected, that data's protected, it's secure, but it's also accessible, which is an important part of you can take your data wrapping a nice bow buried a hundred feet underground, but then you can't use it, right? So you want to be able to make sure that you can actually, uh, leverage the technology there. Um, we've seen explosive growth, especially in, in my market. I think the numbers are pretty crazy. It's something like 90% of the market today in the U S has served in some capacity by a service provider. >>And this could be a small to medium size business that's served by local service fire to those really big guys that are out there. Let's on with how large your target audience, you mentioned search probably multiple times when you're out selling your target persona, your target audience, and you're trying to reach into, so we touch, everybody know, you equate it to kind of what we do with the red Sox, right? You walk into that city and the 38,000 people that, well, some of those people are just, you know, regular Joe's, right? They, they go to work every day. They have a computer at home, they have a mobile device. They probably have multiple mobile devices. We protect that for them. We call them a consumer. Slash. Prosumers. We work at a lot of very large retail organizations. If you walk into some of those shops today, you'll be able to see our software on a shelf there. >>You work with one of those tech squads where they're starting to attach services to it and you get more of a complete offering there. We then scale up a little bit further to some OEM providers. You work with companies like Honeywell and Emerson that are manufacturing devices that embed our software on there. They white label it and deliver it out. These are connected devices. You think about the, you know the, the explosion of IOT devices in the market today. We're protecting that stuff as well. We work with very large enterprises, so some of the, the major players that you see in the manufacturing space are standing up standardizing on Acronis process control process automation vendors are using our Chronis and we can deliver the solution because of the way it's so flexible in a very consumable way for them. Those enterprises can actually act as a service provider for their employees so we can actually take our technology, deploy the layer in their infrastructure where they have complete control. >>They might not want to be in an Uber cloud, they might not want to work with Chrome OS data center. They want to have and hold that data. They want to make sure it's on site. We enable that type of functionality and then the fastest growing area for us is what I hit on earlier within the service provider community. We're recruiting hundreds of service providers every quarter. We've got some great partners here. Give you an example of a service provider. You mentioned the red size, I'm assuming is that a vendor that might be working within that organization, but still it sounds like that's a supplier to the red Sox. How, how broad is that definition? It gives us many points. Yeah, it's a really good point. So we work with hosting providers. Look, can be regional hosting providers to multinational hosting providers. Some of the very big names that you've, you're probably familiar with. >>We work with, uh, we work with, uh, telco providers who work with ISV providers or sorry, ISP providers, um, kind of regional telco providers that provide a myriad of different services all the way down to your kind of local mom and pop type service providers where you've got a small business, maybe they've got 30 to 50 employees, they're servicing probably 200 to 300 customers and they want to provide a very secure, safe, easy to use complete solution to their customers. Uh, those could be focused on certain verticals so they could be focused on healthcare, financial services, construction, et cetera. Um, we have some that are very niche within like dental services or chiropractice offices, small regional doctor's offices. Uh, and the, the beauty of that, and I was getting the partners earlier, is we have partnerships with companies like ConnectWise where those are tools that service providers are using on a very daily basis. >>So essentially the platform gives you that range and that's the typical typical platform. So you have that broad horizontally scalable capability and the domain expertise either be what solution from you guys or can ISV or someone within your ecosystem is that they get that. Right? Absolutely. And that's what really differentiates us is our ability to integrate into that plat, into our platform, into their platform and make those connections. So you don't need to learn 12, 14, 15 different technologies. You've got a small suite of offerings in a single pane of glass, very easy to use, very intuitive. Um, the integrations that we have with these partners like ConnectWise, like Ingram micro, really differentiate us because what they do is they provide open API capabilities. They provide software development kits where these partners can go ahead and build it the way they want to sell it. >>You know, it's interesting when the cloud came out and as on premise has changed to a much more agile dev ops kind of mindset that forced it to think like a service provider. I think like an operating system, it's an operating environment basically. So that service provides an interesting angle and I want to get your thoughts on this because I think this is where you guys have such a unique opportunity to just integrate solution because you could get into anything and you got ISV to back that up. So I guess the question I would have is for that enterprise that's out there that's looking to refactor and replatform their entire operation, or it could be a large enterprise, it has a huge IOT opportunity or challenge or a service provider is looking at having a solution. What's the pitch that you would give me if I'm the one of those customers? >>Say, Hey Pat, what's the pitch? So you need a, you need a trusted provider that's been in the business for a number of years that understands the data protection and security markets that Kronos has that brand. We've been doing this for about 16 years. We were founded in Singapore, we're headquartered out of Switzerland and we've got a lot of really smart guys in the back room. Was building good technologies that our partners were able to use. Um, we look at it a lot of different ways. I mentioned our go to market across a lot of different verticals and a lot of different um, kind of routes for those. The way we deliver our solution. It provides the flexibility for an enterprise to a classic reseller to um, you know, a VAR or a service, right? It's delivering services. It can be delivered to those guys how they want to consume it. >>So as an example, we may work with a smaller service provider that doesn't have any colo capabilities. We provide data centers so they could have a very quick turnkey solution, allows them to get up and running with their business, selling backup within minutes to their customers. We can also work with very large enterprises where we can deliver the complete platform to them and then they have complete control over it. We sprinkle in some professional services to make sure that we're giving them the support that they need and then they're running the service for themselves. What we've really seen in terms of a trend is that a lot of these VARs, we have about 4,500 of them in North America and they're starting to look at their businesses differently. Say, I gotta adapt or die here. I gotta figure out what my next business model is. >>How am I going to be the next one that's in the news flash that says, Hey, they've been acquired, or Hey Thoma Bravo made a big investment in me. Right? They need to convert to this services business or Kronos enables that transformation to happen. I mean, I can see you guys really making money for channel partners because they want solutions. They want to touch the customer, they want to maybe add something they could bring into it or have high service gross profits around services. Absolutely. So, yeah, our solution is unique in the sense that allows partners to sell multiple offerings to, you're getting an additional layer of stickiness providing multiple solutions to a customer. You're using the same technology, so your it team is very familiar with what they're using on a daily basis. Um, you're reducing the amount of churn for your customers because you're selling so much additional there that they're really stuck with you. >>That's a good thing. Uh, and beyond that, your increasing ARPU, average revenue per user is a key metric that all of our partners are looking at. And these guys are owner operators, right? They're business owners. They're looking at the bottom line. I mean, it's interesting the operating leverage around the consistent platform just lowers, it gives them software economic model. They can get more profit over time as they make that investment look at at the end of the day, channel partners care about a couple things, money, profit and customer happiness. Absolutely. And it helps to have them want to have a lot of one offs and a lot of, you know, training, you know, anything complicated, anything confusing, anything that requires a lot of resources, they're not going to like a, it's also great to have events like this where you're able to, to press the flesh with these guys and, and being face to face and understand their real world challenges that they're dealing with on a daily basis. >>How has the sport's a solution set that you've been involved in? How has that changed the culture of Acronis? Is that, has that, has that changed as, you know, sports is fun. People love sports, they have real problems. It's a really great use case as well. How's that change the culture? It's been amazing. I, so one from a branding perspective, we are a lot more recognized, right? Um, the most important thing about these partnerships for us is that they're actually using the technology. So, you know, we've got the red Sox here with us today. We've got arsenal represented, we've got Williams, we've got Roush racing, we've got a NASCAR car back here. Um, they use our technology on a daily basis and for each one of them we solve different types of use cases. Whether it's sending them large amount of video data from an essence studio over to Fenway park, or if it's a scout out in the field that needs to send information back and their laptop crashes, how do they recover? >>A lot of these different use cases, you can call them right back to a small business owner. You don't have to be a multibillion dollar sports organization with the same challenge. Well, I'm smiling because we've been called the ESPN of tech to they bring our set. We do let the game day thing. We certainly could love to come join you in all these marquee events that you have. We'd love to have it. Yeah, so if you follow us on social, we're out there and that, that's a big part of it. You mentioned one of ours looking for what our partners looking for. They want a personal relationship too. A lot of that goes away with technology nowadays and being able to really generate that type of a, of a personal relationship. These partnerships enable that to happen and they're very anything, I don't know anything about cars. >>We started partnering with formula one. All of a sudden I know everything about 41 I go to these races. I tell everybody I don't know anything about cars and I ended up being the, the subject matter export for him over over the weekend. So we'd love to have you guys join us. We'd love all of our partners. They get more engaged in the sports aspect of it because for us, it really is something that, um, again, they're using us in real life scenarios. We're not paying to put a sticker on a car that's going 300 miles. It's not traveling as a real partnership. Exactly. Pat, congratulations on your success and good luck on people owning away the numbers. Congratulations. Thank you very much. Just the cube coverage here at the Chronis global cyber summit 2019 I'm John furry. More coverage after this short break.